PT LG Electronics Indonesia confirmed its readiness to operate a new air conditioner (AC) factory in Cibitung, Bekasi, by the end of 2025. This expansion marks the company’s strategic move during its 35th year in Indonesia to enhance operations and create new job opportunities.

“This is a strategic investment to position LG as a domestic manufacturing leader,” said LG Electronics Indonesia President Ha Sang-chul in a statement released Wednesday.

Factory to Produce Residential and Commercial AC Units

The factory, built on a 32,000-square-meter site, will manufacture AC units for both residential and commercial use. Initial production capacity is set at 1.8 million units annually. LG plans to double this capacity over the coming years. The project’s initial investment is valued at USD 22 million, or around IDR 374 billion.

LG stated the factory will implement global quality standards with strict monitoring at every production stage to ensure product performance, energy efficiency, and durability.

Contributing to National Economy and Local Workforce

Mike Kim, Product Director ES of LG Electronics Indonesia, highlighted the factory's role in supporting Indonesia’s economy. “More than simply creating jobs, this factory also contributes to sustainable economic growth,” he said.

The facility aims to meet a Domestic Component Level (TKDN) above 40 percent, aligning with government policy.

Eco-Friendly Technology and ASEAN Standard Compliance

LG will apply environmentally friendly practices by using R32 refrigerant. The factory will also produce air conditioners in line with the Minimum Energy Performance Standard (SKEM), reaching a five-star rating and supporting ASEAN standards harmonization.

This new plant will expand LG’s existing production lines in Indonesia, which already manufacture TVs, refrigerators, and washing machines. LG also operates a research and development center, consumer service facilities, and a national distribution network.

PHOTO: LG

This article was created with AI assistance.