US$600 Million Investment: Gresik Set to Host the Largest Melamine Plant in JIIPE
The construction of a melamine plant valued at approximately US$600 million in the Java Integrated Industrial and Port Estate (JIIPE) Special Economic Zone in Gresik is projected to strengthen the national chemical industry structure.
This project will also serve as a driving force for the development of low-emission industries in Indonesia.
Developed by Golden Elephant (GEABH), this project is one of the largest melamine facilities in the world. The facility is designed in an integrated manner from upstream to downstream, encompassing the processing of natural gas into ammonia, urea, and final products in the form of melamine.
“The development of the melamine industry in Gresik is a strategic step in strengthening national downstreaming. We appreciate the role of the Gresik KEK in providing an integrated industrial ecosystem capable of attracting large-scale, high-quality investments,” said Airlangga on Wednesday (8/4).
The development of this project aligns with the government’s efforts to strengthen the resource-based industrial base, while supporting the transition to more efficient and sustainable industries.
Chairman of Golden Elephant (GESC), Lei Lin, explained that the project adopts a circular economy approach supported by the latest generation process technology. This enables energy efficiency up to 30% lower than global industry standards.
“We see JIIPE as a strategic zone to bring an integrated chemical industry chain based on a circular economy to Indonesia. This project not only strengthens domestic industrial supply but also promotes technology transfer and cross-country industrial cooperation,” Lei Lin stated.
The application of this technology also optimises the utilisation of by-products through recycling processes, thereby strongly supporting the development of low-carbon chemical industries.
“JIIPE is designed to support the industrial value chain from raw material availability, infrastructure, to logistics connectivity. This enables higher efficiency while strengthening sustainable industrial competitiveness,” emphasised Bambang.
In agreement, the Ambassador of the People’s Republic of China to Indonesia, Wang Lutong, assessed this project as an important milestone in economic cooperation between the two countries. According to him, this melamine industry chain will strengthen the supply of strategic chemical products and support industrialisation in Indonesia.
With its status as a Special Economic Zone and support from a deep-sea port, JIIPE holds a strategic position in driving value-added industries. This melamine plant project is projected to have broad impacts.
It will create more than 1,000 new jobs, strengthen the upstream and downstream industrial ecosystem (agriculture, manufacturing, and logistics), and make a positive contribution to economic growth in the East Java region.
This development is expected to become a new standard for the chemical industry in Indonesia that is greener and more efficient in the future.