JAKARTA - The government continues to strengthen the industrial downstream program as part of efforts to transform the national economy, this step aims to increase added value, expand employment, and strengthen the competitiveness of domestic industries in the midst of dynamic global economic challenges.
One of the concrete manifestations of this policy is the construction of a melamine plant in the Gresik Special Economic Zone (KEK), East Java, where this project is developed by PT GEABH Joint Technology and is touted as the first and largest facility in Indonesia.
Coordinating Minister for the Economy Airlangga Hartarto said the project has an investment value of around 600 million US dollars and is part of the development of downstream industries based on natural gas.
Through this project, natural gas will be processed into liquid ammonia which will then be developed into derivative products such as urea, melamine and ammonium nitrate which have high added value.
These products are expected to support various strategic sectors, including agriculture, chemical industry, and manufacturing, as well as opening export opportunities and strengthening Indonesia's position in the global supply chain.
In addition, this project is also expected to be able to create jobs and increase economic activity in the surrounding area.
"The Indonesian government remains committed to ensuring a conducive investment climate. We will continue to provide the necessary support and incentives so that PT GEABH Joint Technology and all investors in this KEK can grow and develop optimally," he said in a written statement, quoted Friday, April 10.
The construction of the melamine plant is part of the development of an integrated industrial area in the Gresik Special Economic Zone which continues to show positive performance in attracting strategic investments.
Until the end of 2025, the total cumulative investment in the national SEZ has reached approximately US$ 19.7 billion, with a significant contribution from the Gresik SEZ which has reached approximately US$ 6.1 billion or approximately 31 percent of the total national SEZ investment.
The performance of these investments is also supported by the stability of the national macroeconomy which remains maintained where in 2025, the Indonesian economy grew by 5.11 percent, driven by strong domestic consumption, increased investment, and solid export performance.
In addition, the realization of investment in the fourth quarter of 2025 also recorded growth of 9.7 percent (year-on-year) with a value of 29.2 billion US dollars.
Meanwhile, KEK Gresik as one of the national priority KEKs has a strategic role in encouraging industrial downstreaming and export increase.
This area also contributes greatly to the regional economy, where the manufacturing sector in East Java contributes around 31.32 percent to the economy, while in Gresik Regency the contribution of the manufacturing sector reaches 52.58 percent to the Gross Regional Domestic Product (PDRB).
In addition to encouraging economic growth, the development of the Gresik SEZ also has a positive impact on improving people's welfare, this is reflected in the reduction of the unemployment rate from 8 percent to 5.47 percent in the last five years and the increase in the Human Development Index (HDI) from 76.98 in 2021 to 79.69 in 2025.
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