Rp 10 Trillion Melamine Factory in Gresik Under Construction, Set to Absorb 1,000 Workers
The construction of a melamine factory in the Java Integrated Industrial and Port Estate (JIIPE) special economic zone in Gresik is expected to strengthen the national chemical industry structure while promoting the development of low-emission industries in Indonesia. The investment in this melamine factory is estimated at around US$600 million, equivalent to Rp 10.25 trillion, assuming an exchange rate of Rp 17,097 per US dollar. This project, developed by Golden Elephant (GEABH), is one of the largest melamine facilities in the world and is designed to be integrated from upstream to downstream, starting from processing natural gas into ammonia, urea, and melamine. Coordinating Minister for the Economy of the Republic of Indonesia, Airlangga Hartarto, stated that the construction of this facility is part of the national strategy to increase the added value of domestic resources while strengthening industrial competitiveness. “The development of the melamine industry in Gresik is a strategic step in strengthening national downstreaming. We appreciate the role of the Gresik SEZ in providing an integrated industrial ecosystem capable of attracting large-scale, high-quality investments,” Airlangga said in an official statement on Friday (10/4/2026). Chairman of Golden Elephant (GESC), Lei Lin, conveyed that this project adopts a circular economy-based chemical industry approach supported by the latest generation process technology. “We see JIIPE as a strategic zone to bring an integrated chemical industry chain based on a circular economy in Indonesia. This project not only strengthens domestic industrial supply but also encourages technology transfer and cross-country industrial cooperation,” Lei Lin explained. He added that the application of this technology enables energy efficiency up to 30 percent lower than global industry standards, as well as optimisation of by-product utilisation through recycling processes, thereby supporting the development of low-carbon chemical industries. “JIIPE is designed to support end-to-end industrial value chains, from raw material availability, infrastructure, to logistics connectivity. This enables higher efficiency while strengthening sustainable industrial competitiveness,” he said. Meanwhile, the Ambassador of the People’s Republic of China to Indonesia, Wang Lutong, assessed that this project will strengthen chemical industry resilience and serve as an important milestone in economic cooperation between the two countries. “The development of the melamine industry chain in JIIPE will strengthen the supply of strategic chemical products, support Indonesia’s industrialisation, and make a positive contribution to regional economic growth,” Wang Lutong stated. With integrated infrastructure support, including a deep-sea port, and its status as a special economic zone, JIIPE is considered to have a strategic position in promoting energy-efficient, value-added, and sustainable industry development. In addition, this project is projected to create more than 1,000 jobs and drive the strengthening of upstream and downstream industrial ecosystems, including the agriculture, manufacturing, and logistics sectors.