DAIKIN Opens First Residential AC Factory in Indonesia

DAIKIN officially announces the commencement of mass production of its residential air conditioner in its first full-scale residential AC factory in Indonesia. Operated under PT Daikin Industries Indonesia (DIID), the new facility is expected to launch locally manufactured residential AC units to the Indonesian market by July 2025.

Speaking at the factory inauguration ceremony, Representative Director, Chairman of the Board, and CEO of Daikin Industries, Ltd. Masanori Togawa emphasized that the new facility plays a strategic role in DAIKIN’s regional growth roadmap. “Indonesia is a vital part of our Asia expansion strategy. With this new facility, we can now deliver products more quickly and reliably to the Indonesian market as well as reinforcing DAIKIN’s leadership in air conditioning industries across Asia and globally,” he stated.

Togawa added that DAIKIN’s decision to open the first full-scale residential AC factory in Indonesia aligned with DAIKIN’s global strategies which consistently emphasized the importance of establishing a strong presence in each country and region. This is represented through localizing operations, maintaining close ties with local markets and aligning DAIKIN business activities with the specific needs of each locale.

He further stated every DAIKIN factory around the world operates under the same high-quality standards. “Thus, I am confident this facility will fully meet the expectations of our Indonesian customers,” said Masanori Togawa.

In line with the statement, Representative Director, President, and COO of Daikin Industries, Ltd. Naofumi Takenaka added, with continued economic development in Indonesia, DAIKIN expects to see significant growth in the air conditioning market, especially in the residential sector. “We look forward to supplying high-quality, “Made in Indonesia” products that are tailored to the needs of this market and to growing together with Indonesia in the years ahead,” said Naofumi Takenaka.

Furthermore, Takenaka emphasized the role of the factory in supporting efforts to create a sustainable environment. This production facility is designed with a forward-looking approach. “We combine automation technology and energy-saving efforts through various innovations in it, including monitoring energy consumption. This is our ongoing effort to reduce environmental impact and support sustainable environmental development," Naofumi Takenaka explained.

He also added that the community’s livelihood will greatly benefit with the presence of this factory. Other than creating more than 2,500 jobs, this factory will also become a center for developing Indonesian workers who are qualified and competent in the field of air conditioning solutions.

The inauguration ceremony, held in the morning in Cikarang, was also attended by Deputy Minister of Trade Dyah Roro Esti. She emphasized that DAIKIN’s investment aligns well with the Indonesian government’s efforts to advance the national industry. She noted that the Ministry of Trade is currently focused on three key priorities: securing the domestic market, empowering MSMEs to access global markets, and expanding export capabilities.

“We see DAIKIN’s decision to build a factory in Indonesia as the right decision that generates a broad multiplier effect. Beyond contributing to social and economic development, this factory is expected to strengthen local supply chains, create new employment opportunities, and accelerate technology transfer. These elements all play a crucial role in enhancing the resilience and competitiveness of our national trade sector,” said Dyah Roro.

The event continued in the evening with an Opening Ceremony held in Jakarta, attended by Vice Minister of Industry Faisol Riza. On this occasion, he emphasized the significance of this manufacturing plant’s establishment, which brings a "breath of fresh air" in supporting Indonesia's efforts to reduce its reliance on residential AC imports that are valued at USD 420,46 million in 2024.

According to Faisol, the government through the Ministry of Industry continues to pursue various strategic policies, including the optimization of the Domestic Product Use Enhancement (P3DN) program, the reform of Domestic Component Level (TKDN) regulations, and the mandatory implementation of Indonesian National Standards (SNI) for electronic products, which will commence in July 2025. "With these steps, we wish for DAIKIN to contribute in driving the enhancement of domestic components, including initiating the production of essential components such as AC compressors that currently still rely on imports. This effort will surely reinforce the domestic independence and the domestic supply chain," said Faisol Riza.

Moreover, he expressed his optimism that DAIKIN will unlock substantial opportunities for Indonesia to evolve as a central hub for AC production and export within the ASEAN market. This optimism stems from DAIKIN's extensive global production network and the ongoing technology transfer support at its newly established factory.

Leading the factory operations, President Director of PT Daikin Industries Indonesia (DIID) Khamhaeng Boonthavee emphasizes the manufacturing facility adheres to Japanese production standards and procedures in terms of its operation. According to Boonthavee, this can be achieved through the close collaboration and strong support from DAIKIN’s three core production bases, namely: DAIKIN Japan, DAIKIN Thailand, and DAIKIN Malaysia.

Through this collaboration, PT Daikin Industries Indonesia (DIID) has installed machines and equipment with the latest technology to support its operation, including the implementation of the Internet of Things (IoT) and energy-saving equipment. “This first full-scale residential AC factory in Indonesia was created with the vision of delivering DAIKIN’s globally standardized products to reflect the company’s commitment to quality and innovation,” said Khamhaeng Boonthavee.

Director of PT Daikin Industries Indonesia (DIID) and PT Daikin Airconditioning Indonesia (DID) Budi Mulia added that the factory, with an annual production capacity of up to 1.5 million, will manufacture three main residential AC models. The factory will focus on inverter-based units due to their energy efficiency and environmental benefits, which also align with the Indonesian government’s energy-saving initiatives, reinforcing DAIKIN’s role in supporting a greener future.

Budi Mulia explained that this investment is a real manifestation of DAIKIN’s contribution to Indonesia's social and economic growth. He added that with the factory’s full production capabilities, more opportunities for various business sectors especially for Micro, Small, and Medium Enterprises (MSMEs) to be DAIKIN business partners in its operation in Indonesia. “Our commitment to quality and contribution to the social-environment is a reflection of our efforts to make DAIKIN truly the right choice for the Indonesian people,” Budi Mulia concluded.