Japanese electronics giant Daikin has officially commenced mass production of residential air conditioners at its first full-scale factory in Indonesia. Operated by PT Daikin Industries Indonesia (DIID), the facility will introduce locally manufactured AC units to the Indonesian market by July 2025.
The plant, located in the GIIC Industrial Parks area, represents a significant investment of IDR 3.3 trillion and has a projected annual production capacity of 1.5 million units.
Deputy Minister of Industry Faisol Riza praised Daikin’s investment, calling it a “strategic move” that strengthens Indonesia’s electronics manufacturing sector. “I express my highest appreciation to PT Daikin Industries Indonesia for its role and commitment in advancing the Indonesian electronics industry,” he said in a statement on Friday, May 16.
Riza noted that the factory’s presence would help reduce Indonesia’s reliance on imported air conditioners and position the country as a regional AC production hub in ASEAN. The facility is also expected to create 950 to 1,000 jobs, further supporting local employment.
Despite the progress, Riza acknowledged that the electronics sector continues to face challenges—particularly a reliance on imported air conditioning compressors, which totaled USD 244.29 million in 2024. To address this, the government is encouraging Daikin to localize the production of key components, including compressors, to boost domestic supply chain resilience.
Related topics: