Daikin Industries Indonesia (DIID) has completed its first full-scale air conditioner (AC) factory in Cikarang, West Java, Indonesia. The 20-hectare facility was built with an investment of Rp 3.3 trillion ($206 million).

The investments were raised with the assistance of a financial partner, who acted as a financial guarantor of the transaction by issuing a bank guarantee to the financing organization.

DIID President Director Khamhaeng Boonthavee stated during Thursday’s inauguration that every stage of production would follow Daikin’s global standards. This factory, the first of its kind in Indonesia, integrates the entire production process — from raw material processing to finished products — entirely within the country.

DIID Director Budi Mulia said the facility meets key domestic production standards, including the Domestic Component Level (TKDN), Indonesian National Standards (SNI), and Energy Efficiency Certification (SHE).

“With this factory, we aim to achieve a TKDN level of over 40 percent by 2025,” Budi said.

The factory has already begun production, delivering its first 2,000 household AC units. By mid-2025, Daikin targets an annual production capacity of 1.5 million units, which is expected to create 2,500 jobs.

The company also plans to enter the export market by early 2027, with the Philippines as one of its primary destinations. The products will include household AC units with capacities ranging from 0.5 to 3 horsepower.

“With all the preparations in place, we hope to introduce Indonesia-made Daikin AC units to the wider market by mid-2025,” Budi said.

The factory incorporates several sustainable features, including architectural designs to reduce energy use, such as sun radiation-reducing facades, Low-E glass, and roof insulation to minimize heat loads. The facility also utilizes energy-efficient air conditioning systems, solar panels for electricity generation, and heat recovery ventilation systems. Additionally, Daikin has implemented an energy monitoring system across the plant to optimize efficiency.

Deputy of Industry Minister Faisol Riza, who attended the inauguration, commended Daikin for its significant investment and commitment to sustainability. “This full-scale factory reflects a positive synergy between the private sector and the government in achieving shared goals — driving economic growth, creating 2,500 job opportunities, and strengthening Indonesia’s position in the global manufacturing market,” Faisol said.

He also praised Daikin’s efforts to prioritize domestic content and sustainability principles in its production processes, adding, “We hope Daikin’s initiatives will inspire other companies to contribute to building a stronger and more sustainable industrial sector.”