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Daikin begins mass production at first residential AC factory in Indonesia
21 May 2025

Daikin begins mass production at first residential AC factory in Indonesia

Daikin has officially started mass production of residential air conditioners at its first full-scale factory in Indonesia. Operated by PT Daikin Industries Indonesia (DIID), the facility was inaugurated on May 14 and is scheduled to launch locally manufactured units to the Indonesian market by July 2025.

The factory’s inauguration ceremony was attended by Daikin leadership, including Representative Director, Chairman of the Board, and CEO Masanori Togawa, who stated the plant plays a strategic role in the company’s Asia expansion strategy. “With this new facility, we can now deliver products more quickly and reliably to the Indonesian market,” Togawa said.

According to Daikin, the facility aligns with the company’s global strategy to strengthen regional presence through localized operations. Representative Director, President, and COO Naofumi Takenaka emphasized that the factory is expected to support market growth in Indonesia’s residential air conditioning segment. He added that the site integrates automation and energy-saving innovations to reduce environmental impact.

The factory will employ over 1,500 people and function as a center for developing local workforce skills in air conditioning technologies. It has an annual production capacity of up to 1.5 million units and will manufacture three residential AC models, focusing on inverter-based systems.

Vice Minister of Industry Faisol Riza highlighted the significance of the investment in reducing Indonesia’s reliance on AC imports, valued at USD 420.46 million in 2024. He expressed hope that Daikin would increase local component manufacturing, including compressors, in line with national strategies such as the Domestic Product Use Enhancement (P3DN) program and mandatory SNI implementation starting July 2025.

President Director of PT Daikin Industries Indonesia Khamhaeng Boonthavee noted that the factory operates under Japanese production standards with support from Daikin’s facilities in Japan, Thailand, and Malaysia. The site includes IoT integration and energy-saving equipment to support high-quality production.

Director of PT Daikin Industries Indonesia and PT Daikin Airconditioning Indonesia, Budi Mulia, said the investment supports Indonesia’s socio-economic development and offers business opportunities for local Micro, Small, and Medium Enterprises (MSMEs).

Related tags: air conditioning, Daikin
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