Jakarta (VNA) – Indonesia has commenced the construction of its first melamine plant in the Gresik Special Economic Zone (KEK Gresik) in East Java province, with a total estimated investment of approximately 600 million USD.
The project is seen as a strategic step to boost the development of the country’s chemical industry and enhance domestic value creation.
Designed as an integrated melamine production complex, the plant will have a maximum capacity of 120,000 tonnes per year and is expected to begin operations in the second quarter of 2027.
Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto said the project reflects the government’s commitment to strengthening advanced processing industries, particularly in the petrochemical and strategic chemical sectors.
The facility will process natural gas into liquid ammonia and derivative products such as urea, melamine and ammonium nitrate, supporting key sectors including agriculture, chemicals and manufacturing.
Melamine is an important chemical compound widely used in the production of rigid plastics and durable materials, as well as in agriculture and manufacturing industries. Domestic production is expected to reduce reliance on imports, strengthen the local supply chain, and expand export opportunities.
The project forms part of the National Medium-Term Development Plan 2025–2029 (RPJMN), which emphasises the role of special economic zones as growth drivers and new industrial hubs.
By 2025, total investment in Indonesia's special economic zones had reached 336 trillion IDR (19.8 billion USD), creating more than 249,000 jobs. The Gresik Special Economic Zone alone attracted 105.4 trillion IDR, accounting for 31% of total investment in the system and generating employment for approximately 46,000 workers.
In addition to import substitution, the melamine plant is expected to stimulate the development of supporting industries, create jobs, and increase Indonesia’s export value in the coming years./.
