SIGNING OF MOU OF AGREEMENT AND COOPERATION AGREEMENT BETWEEN PT. DAIKIN AIRCONDITIONING INDONESIA WITH THE MINISTRY OF EDUCATION AND CULTURE OF THE REPUBLIC OF INDONESIA CONCERNING “ORGANIZATION OF I
Daikin is a well-known Japanese manufacturer of air conditioners, specializing in air conditioners that was founded in 1924. Our main business domain is in the field of air conditioning and we are pleased to be collaborating with the Ministry of Education and Culture of the Republic of Indonesia in carrying out competency development in the field of refrigeration and air conditioning engineering in vocational high schools. (SMK) throughout Indonesia.
Daikin has been here in Indonesia since 1970 under a local distributor. And in 2012 Daikin Japan decided to be directly involved in business in Indonesia and thus PT Daikin Airconditioning Indonesia was established in April. By the end of 2018, we already have 13 branches and more than 1,100 dealers throughout Indonesia. The number of employees reaches more than 650 people and sales of more than 3.5 trillion rupiah.
Indonesia is one of the fastest growing economies in ASEAN and is predicted to become the world's 4th largest economy by 2045. In the field of air conditioning, the penetration of the air conditioning market in this country is still below 25%. There is still a 75% chance available for manufacturers, sellers, technicians, and installers to benefit. With the 2 points above, the potential for air conditioning expansion in this country is huge.
When we talk about buying a home appliance product, we can actually go to the nearest electronics store to buy it, make a delivery, connect it to a power source and start using it. No need for a third party to install it. However, this AC business is unique, where we need to be installed by qualified technicians. In addition, with the development of commercial buildings in Indonesia such as offices, schools, hospitals, malls and others; Daikin has introduced new products suitable for these commercial applications. With this, technicians need to be retrained frequently to install these commercial air conditioners.
We believe that not only us, but all AC manufacturers in Indonesia face great challenges in installation. These challenges are not only due to the shortage of manpower, but also the quality of the work. There are many cases where installers learn directly in the field without getting formal education from a quality institution or school.
We at Daikin feel that it is our primary mission to solve this problem. Therefore, since 2013 we have conducted a lot of training for field technicians. Last year we established the first National Training Center in North Jakarta with a space of more than 2,000 square meters equipped with 3 classrooms, 3 practical rooms for various types of air conditioning products from residential air conditioners to commercial air conditioners and 1 welding room. This center has been registered as a competency test site from the Professional Certificate Institute for Air Conditioning and Air Conditioning (LSP-TPTU), complete with the most comprehensive training facilities in the field of air conditioning. Since the establishment of this center in July 2018, we have trained more than 10,000 participants in our National Training Centre.
This year, we are extending our training to SMK because schools are the main resource for Indonesia's future. By working with the ministry and vocational school teachers, we want to prepare Indonesia's future generations, train them and prepare them for actual situations in the field who can handle various types of AC products confidently and professionally.
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