Indonesia Offers Gresik Mega

At the Indonesia-Japan Investment Forum (IJIF) 2026, Indonesia made a series of compelling offers to Japan, ranging from a strategic tin downstreaming project at the Java Integrated Industrial & Port Estate (JIIPE) in Gresik, East Java, to the ambitious Giant Sea Wall (GSW) mega-project. These proposals underscore Indonesia’s commitment to fostering robust economic partnerships.

Maria Renata Hutagalung, Deputy Chief of Mission at the Indonesian Embassy in Tokyo, highlighted the shared vision between the two nations. She stated that Indonesia and Japan are actively pursuing new engines of growth that are inherently greener, more resilient, and ultimately sustainable for the future.

Renata further emphasized that Japan’s role transcends merely being the fifth-largest investor in Indonesia; it is a profound and trusted development partner. Over the years, Japanese investments have generated more than 278,000 jobs across the archipelago and have been instrumental in supporting Indonesia’s crucial agendas for industrial downstreaming and the nationwide energy transition.

Among the key offerings was the expansive Industropolis Batang Special Economic Zone (SEZ). This mega-project is meticulously designed to cultivate a vibrant high-tech industrial ecosystem, with a keen focus on emerging sectors such as electric vehicles (EVs), state-of-the-art data centers, and advanced manufacturing capabilities.

Another significant proposition was the Biomass Energy project in Grobogan, Central Java. Valued at a capital expenditure of US$15.5 million, this initiative leverages corn agricultural waste to generate biomass energy. The project has already captured the attention of Japanese industrial giant Kobelco, with further discussions reportedly underway, signaling strong potential for collaboration.

Cahyo Purnomo, Director for East Asia, South Asia, Middle East, and Africa Promotion at the Ministry of Investment/BKPM, revealed the impressive scale of Japan’s financial commitment. He stated that Japan’s realized Foreign Direct Investment (FDI) in Indonesia reached a substantial US$18.1 billion from 2021 through the first quarter of 2026, demonstrating sustained confidence in the Indonesian market.

This period also saw a robust average annual growth rate of 13.2 percent for Japanese investments. However, Purnomo acknowledged an ongoing challenge: the need for greater economic equity, as a significant 94 percent of Japanese investment projects currently remain concentrated on Java Island.

In response, the Indonesian government is now proactively and aggressively encouraging Japanese investors to venture beyond Java, urging them to explore the rich and diverse “golden opportunities beyond Java” that promise more balanced regional development.

The IJIF 2026 proved to be more than just a platform for presentations; it successfully forged concrete business commitments. This renewed confidence from Japanese investors was underscored by the announcement of Letters of Intent (LoI) from two prominent companies: Pongamia Co., Ltd and Onoda Inc.

Pongamia Co., Ltd has committed to investing in the renewable energy sector by establishing Pongamia plant plantations across Indonesia. This ambitious project aims to produce sustainable biodiesel and bio-aviation fuel, directly aligning with Indonesia’s comprehensive green energy transition roadmap.

Simultaneously, Onoda Inc. is targeting Indonesia’s manufacturing sector. Their plans involve the assembly of advanced ultrasonic gas meter equipment sourced from Japan. This strategic investment is poised to significantly bolster the government’s program to expand the national household gas network, contributing to vital infrastructure development.