Gresik SEZ to host RI's first melamine factory

Indonesia will have its first domestic melamine factory following the groundbreaking ceremony in the Gresik Special Economic Zone (SEZ) in Gresik Regency, East Java Province, on Apr. 8, 2026. The factory will be developed by PT GEABH Joint Technology, with a total investment of around US$600 million (around Rp10.16 trillion). Through this project, natural gas will be processed into liquid ammonia, which will then be developed into derived products with high added value such as urea, melamine, and ammonium nitrate.

This process will create products that can support various sectors such as agriculture, the chemical industry, and manufacturing, while also opening export opportunities and strengthening Indonesia's position in the global supply chain. This project is also expected to create jobs and increase economic activity in the surrounding area.

"The Indonesian government remains committed to ensuring a welcoming investment climate. We will continue to provide the necessary support and incentives to enable PT GEABH Joint Technology and all investors in this SEZ to grow and develop optimally," said Coordinating Economy Minister Airlangga Hartarto in his official statement on Apr. 9, 2026.

Furthermore, the construction of the melamine factory will encourage the development of the Gresik SEZ. For the record, total investment in SEZs nationally had reached about US$19.7 billion (about Rp333.75 trillion) by the end of 2025, with the Gresik SEZ contributing about US$6.1 billion (about Rp103 trillion), or approximately 31 percent of total national SEZ investment.

The Gresik SEZ also contributed around 31.32 percent to the manufacturing sector in East Java. For Gresik Regency, the manufacturing sector contributed 52.58 percent to its regional gross domestic product.