LG Electronics has invested in a partner-operated plant in Bekasi, West Java, dedicated to producing air conditioners for the Indonesian market. The move is part of LG’s Global South strategy to strengthen its regional presence and supply chain. The 32,000-square-meter facility began operations in September, starting with residential air conditioners. In its first year, it will produce around 700,000 indoor and outdoor units, with plans to double output later.
The plant follows LG’s global quality control system and supports the Indonesian government’s goal of aligning energy efficiency standards with ASEAN guidelines. It uses R32 refrigerant to reduce environmental impact. In line with domestic sourcing policies, LG aims to produce or source over 40% of key components locally. This will create jobs, promote local manufacturing, and encourage technology transfer.
The new facility marks LG’s continued contribution to Indonesia’s industrial growth and aligns with its broader approach to balance global operations through investments in key regions like Brazil, India, and Thailand.
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