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LG Expands HVAC Operations in Indonesia with New Partner-Operated Facility

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LG Electronics (LG) has inaugurated a partner-operated air conditioner production facility in Bekasi, West Java, Indonesia, marking a key step in its Global South strategy. Spanning 32,000 square meters, the facility began operations last month and will initially produce residential air conditioners, with an expected output of 700,000 units in its first year and plans to double capacity in the near future.

The Bekasi plant adheres to LG’s global quality standards and energy efficiency guidelines, applying the company’s Korean Quality Control system to ensure consistent performance and reliability. Products employ R32 refrigerant, reflecting LG’s focus on environmentally responsible solutions. The facility also aligns with Indonesia’s Minimum Energy Performance Standards and government policies on domestic component sourcing, aiming to locally produce or source over 40% of key components, supporting self-sufficiency and strengthening the regional supply chain.

Designed to meet local market needs, the plant will stimulate economic growth, create jobs, and facilitate knowledge-sharing in air conditioning technology. This expansion complements LG’s broader Global South strategy, which spans manufacturing, R&D, sales, and maintenance in key markets including Brazil, India, Thailand, and Indonesia. Through localized production and advanced technologies, LG aims to reinforce its position as a leading global HVAC provider while contributing to sustainable regional development.

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