Indonesia's Largest Melamine Plant Launches in Gresik SEZ with Rp 10.2 Trillion Investment

A melamine factory project with an annual capacity of up to 120,000 tonnes has officially begun in the Gresik Special Economic Zone (SEZ), East Java. This facility, developed by PT GEABH Joint Technology, is poised to become Indonesia’s first and largest melamine plant. Coordinating Minister for the Economy, Airlangga Hartarto, stated that the investment for the project amounts to approximately US$600 million, equivalent to Rp 10.2 trillion at an exchange rate of Rp 17,000 per US dollar. The factory’s construction forms a crucial part of efforts to develop downstream industries based on natural gas. Airlangga explained that through this strategic project, natural gas will be processed into liquid ammonia. Subsequently, the ammonia will be developed into various high-value derivative products, such as urea, melamine, and ammonium nitrate. This statement was conveyed in a written remark quoted on Friday (10/4/2026), as reported by Detik Finance. The melamine factory is targeted to be completed and operational by the second quarter of 2027. The construction process will be carried out in an integrated manner, encompassing stages from processing natural gas into ammonia, then further into urea, culminating in melamine as the final product. The products generated are expected to support various vital sectors, including agriculture, the chemical industry, and manufacturing. Additionally, this initiative holds potential to open broader export opportunities, thereby strengthening Indonesia’s position in the global supply chain. The project is also anticipated to create jobs and stimulate economic activity in the surrounding area.