By Diplomacy Journal Lee Kap-soo

LG Electronics has invested in a partner-operated production facility in Bekasi, West Java, Indonesia, dedicated exclusively to manufacturing LG air conditioners.

As part of the company’s strategic efforts to reinforce its Global South strategy, the new facility will enhance LG’s presence in Indonesia, help strengthen its supply chain and serve as a hub for air conditioning innovation.

Coinciding with LG’s 35th anniversary in Indonesia, the Bekasi facility spans 32,000 square meters and commenced operation last month, starting with residential air conditioner production. In its first year, the factory is expected to produce approximately 700,000 indoor and outdoor units, with plans to double capacity in the near future.

All products manufactured at the facility will adhere to LG’s stringent global quality standards and embody the exceptional energy efficiency for which the company is renowned. Implementation of LG’s Korean Quality Control system – applied at all LG production sites globally – will support consistent performance and long-lasting reliability.

The facility also supports the Indonesian government’s initiative to harmonize Minimum Energy Performance Standards with those of the Association of Southeast Asian Nations (ASEAN). Furthermore, LG’s residential solutions employ R32 refrigerant,1 underscoring the company’s commitment to environmental responsibility.

Building on LG’s advanced technologies with localized production systems, the partner-operated plant is designed to deliver solutions optimized for the Indonesian market.

In line with government policy on Domestic Component Level (TDKN2), LG aims to domestically source or manufacture more than 40 percent of key components used in production at Bekasi, contributing to local self-sufficiency and bolstering the supply chain. The plant will also create jobs, stimulate the regional economy and promote knowledge-sharing in air conditioning technology. These efforts will drive new growth opportunities for LG while advancing its goal of becoming a top-tier global HVAC provider.

LG has already played an important role in Indonesia’s industrial and social development through local manufacturing, sales and R&D. With facilities in Tangerang and Bekasi supplying both the domestic and regional markets, as well as a recently established R&D subsidiary, the company continues to create employment, facilitate knowledge transfer and support national industrial growth.