Daikin Invests IDR3.3 Trillion To Build A Factory With Production Capacity Of 1.5 Million AC

Daikin Invests IDR3.3 Trillion To Build A Factory With Production Capacity Of 1.5 Million AC

Friday, 13 Dec 2024

The first full-scale air conditioner (AC) manufacturing plant in Indonesia, PT Daikin Industries Indonesia (DIID), is set to commence production in December 2024. The investment for the establishment of this AC plant amounts to IDR 3.3 trillion, with an estimated production capacity of 1.5 million air conditioning units per year.

The Deputy Minister of Industry, Faisol Riza, expressed his appreciation for the establishment of the factory located in the Greendland International Industrial Center in Cikarang. "Air conditioners are among the household products with a high import rate. However, PT Daikin Industries Indonesia is now capable of producing them locally," Faisol stated on Friday, December 13, 2034.

"We commend the establishment of Indonesia's first full-scale AC manufacturing plant by DAIKIN, where the entire process, from raw material processing to the finished product, is conducted domestically," he remarked. During his visit to PT DIID on Thursday, December 12, 2024, Faisol learned that DAIKIN has the capacity to employ between 1,600 and 2,500 workers.

Faisol also noted that DAIKIN's investment represents one of the largest investments in the electronics sector. He believes that this investment is a strategic decision for DAIKIN, a prominent Japanese brand recognized as the market leader in the AC sector in Indonesia, to invest domestically.

Kemenperin is encouraging other major brands to follow DAIKIN's initiative to establish production facilities in Indonesia, aimed at catering to both domestic needs and export markets. The Deputy Minister of Industry, Faisol, emphasized the importance of DAIKIN also producing air conditioning components that are currently not manufactured in Indonesia, such as compressors.

"I urge DAIKIN to independently meet the demand for air conditioning components, particularly those that are not yet produced domestically, to reduce reliance on imported parts," Faisol added. Khamhaeng Boonthavee, the President Director of DIID, stated that as the first full-scale air conditioning factory, all production processes—from the selection and processing of raw materials to the final product—will take place in Indonesia.

However, each stage will be monitored and executed in accordance with DAIKIN's global standards established in Japan. "This is to ensure the highest quality that meets the needs of our consumers in Indonesia," Khamhaeng remarked.

Meanwhile, Budi Mulia, the Director of DIID, noted that the DAIKIN production facility, which spans 20 hectares, has met various requirements. (ferry@insightinnews.com)

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