Jakarta, Dec 2, 2022 – Daikin, globally recognized as a specialist in air conditioning solutions, is realizing its investment in Indonesia by breaking ground on a new air-conditioner (AC) manufacturing facility valued at IDR 3.3 trillion. Spanning 204,000 square meters within the Greenland International Industrial Center (GIIC) in Cikarang, the new Daikin AC plant is designed to achieve a full production capacity of 1.5 million units annually.
As part of the master plan, Phase 1 of the production facility will cover 51,000 square meters. Scheduled to commence its first production run in December 2024, the plant’s initial year output is projected to reach approximately 500,000 units.
“This facility is a key part of our strategy to solidify our position as the leading AC brand in Indonesia, where we anticipate significant growth in residential AC demand going forward,” stated Yoshihiro Mineno, Member of the Board and Senior Executive Officer at Daikin Industries Limited. He noted that this projection is driven by Indonesia’s status as the world’s fifth-most populous country, currently home to 270 million people and expected to reach 300 million by 2030.
With Indonesia’s ongoing investments in urban infrastructure, human resources, and industrial development, Daikin sees the nation strengthening its vision to become the world’s fifth-largest economy by GDP in 2045. This anticipated economic growth, fueled by a rising middle-class population, is expected to drive increased demand for residential AC units.
In Indonesia, Daikin has been operating for 52 years through partnerships with PT. Imora Makmur and PT. Budiman Kencana Lestari. To support its operations, Daikin maintains thirteen branch offices nationwide, with its headquarters in Jakarta overseeing marketing and after-sales service. Leveraging its extensive distribution network across the archipelago, Daikin holds a 35.5% market share, cementing its position as the leader in the domestic residential AC market.
Elaborating further, Yoshihiro Mineno added that the facility will incorporate cutting-edge technologies, including IoT (Internet of Things) and Artificial Intelligence (AI). This initiative aligns with Daikin’s support for Indonesia’s national Industry 4.0 development roadmap.
Daikin’s commitment to supporting the Indonesian government extends beyond investment and the creation of 2,500 new jobs. The new plant is also poised to boost export volumes. In addition to serving domestic demand, the facility will be strategically positioned for export markets, particularly targeting Southeast Asian countries where there is high demand for compact-capacity AC units.
Furthermore, the plant underscores Daikin’s alignment with Indonesia’s environmental conservation efforts, energy-saving initiatives, and carbon footprint reduction goals. The facility will exclusively manufacture inverter ACs, a proven technology for electricity efficiency. Additionally, it will utilize R32 refrigerant, which is widely recognized for its eco-friendly profile due to its zero Ozone Depletion Potential (ODP).
By ensuring a steady supply of eco-friendly R32 inverter ACs, Daikin aims to make these energy-efficient models more accessible and affordable, thereby expanding their adoption among households across Indonesia. “As Daikin continues to lead the air conditioning solutions industry, improving quality of life remains central to our operations in Indonesia,” concluded Yoshihiro Mineno.
