Investing IDR 3.3 Trillion, Daikin's AC Factory Ready To Produce 1.5 Million Units Per Year

Deputy Minister of Industry (Wamenperin) Faisol Riza (photo: Kemenperin)

JAKARTA - A Japanese manufacturer, Daikin, officially announced the start of mass production of residential air conditioning at the first full-scale residential air conditioner factory in Indonesia. Operating under the auspices of PT Daikin Industries Indonesia (DIID), the new facility is expected to launch a locally produced residential air conditioner unit to the Indonesian market in July 2025.

Deputy Minister of Industry (Wamenperin) Faisol Riza said the company had invested in Indonesia worth IDR 3.3 trillion with a production capacity of 1.5 million units per year.

"I express my highest appreciation to the ranks of PT Daikin Industries Indonesia for its role and commitment in investment and initiative to advance the Indonesian electronics industry," said Faisol in a written statement, Friday, May 16.

According to Faisol, the presence of a new factory of PT Daikin Industries Indonesia will bring fresh air in order to reduce dependence on imports and strengthen Indonesia's position as an AC manufacturing center in the Asean region.

"I am sure that the new AC production facility in the GIIC Industrial Parks area can provide a strategic position for PT Daikin Industries Indonesia, both in the domestic market and exports of household AC products," he said.

Faisol added that the new factory of PT Daikin also contributed to the absorption of around 1,000 workers.

"What is also encouraging is that the new factory of PT Daikin also contributes to the absorption of around 950 to 1,000 workers," explained Faisol.

However, Faisol did not deny that the electronics industry is still facing the challenge of dependence on air conditioning compressor imports which reached 244.29 million US dollars throughout 2024.

Responding to this, the government encourages PT Daikin Industries Indonesia to be gradually able to produce key components locally, including compressors, in order to strengthen the independence and chain of domestic supply.

In terms of technical regulations, Faisol said, AC products have been required to comply with SNI based on Minister of Industry Regulation (Permenperin) No. 34 of 2013. Furthermore, in July 2025, technical regulations for SNI must be regulated for household electronic products, including air conditioning, effectively regulated through Permenperin No. 7 of 2025 concerning the Implementation of SNI for Household Electronics.

With this regulation, AC products are produced in Indonesia, including PT Daikin Industries Indonesia, which is expected to meet the quality and safety standards set out in the new regulations.

"I hope that the presence of this new factory can be a driving force for the growth and competitiveness of the national electronics industry and significantly contribute to the greater contribution of the processing industry to the country's economy," he concluded.