LG opens air conditioner factory in Indonesia to support Global South strategy

LG Electronics has launched a new partner-operated production facility in Bekasi, West Java, Indonesia, as part of its strategy to expand in emerging markets. The factory, which began operations in September 2025, is dedicated to manufacturing LG residential air conditioners and is expected to produce approximately 700,000 indoor and outdoor units in its first year.

Spanning 32,000 square meters, the facility aims to reinforce LG’s supply chain, boost its presence in Indonesia, and serve as a center for localized innovation. The plant operates under LG’s Korean Quality Control system and manufactures units using R32 refrigerant in line with regional environmental standards.

The new facility aligns with the Indonesian government’s policy on harmonizing Minimum Energy Performance Standards with ASEAN guidelines and supports the Domestic Component Level (TDKN) initiative by sourcing or manufacturing over 40 percent of key components locally. LG also expects the plant to create jobs, stimulate the regional economy, and contribute to knowledge-sharing in HVAC technologies.

This development builds on LG’s 35-year presence in Indonesia, where it already operates manufacturing and R&D sites in Tangerang and Bekasi. The company’s broader Global South strategy includes similar investments in countries like Brazil, India and Thailand to enhance manufacturing flexibility and sustain global growth.

“The new partner-operated facility in Indonesia underscores the tremendous progress we are making in advancing our Global South strategy,” said James Lee, president of the LG ES Company. “By strengthening local production capacity, we can better provide advanced air solutions that meet the needs of customers in Indonesia and surrounding markets, while driving growth across the region.”