Midea Opens New AC Factory in Cikarang, Targets 1 Million Units
Midea opens new AC factory in Cikarang, targeting 1 million units for domestic and export markets.
Jakarta, 6 November 2024 - Midea Electronics Indonesia, a leading global company in electronics and home appliances, is proud to announce the operation of its new air conditioner (AC) factory in Cikarang, Bekasi Regency, West Java.
The factory sits on a 51,405 square meter plot of land, with a total building area of 40,000 square meters, and has been operating gradually since July 2024. Midea has invested an initial sum of IDR 650 billion for the factory.
Agusdin Lung, Head of Sales Residential Air Conditioner Midea Electronic Indonesia, stated that this strategic expansion is aimed at strengthening Midea's position in the Indonesian market and supporting the company’s mission to become the number one AC brand in the country. Midea targets this factory to produce 400,000 AC units by the end of 2024, 800,000 units by 2025, and 1 million units by 2026.
“This factory is expected to meet household needs in Indonesia while also supporting the demand in both the domestic and export markets,” said Agusdin in a press statement in Jakarta on Wednesday, November 6, 2024.
The Midea factory will produce Split AC units as the main product for the domestic market. Additionally, Midea plans to start producing Window AC units that are targeted for export to the United States. This expansion allows Midea to extend its global production network, which currently includes 41 factories worldwide.
The construction of this factory is expected to increase market share and strengthen Midea’s position in Indonesia. Midea is optimistic it can become the number one AC brand in Indonesia within the next three years. To date, the Midea factory in Cikarang has employed approximately 100 local workers, with the potential for additional hiring as production capacity increases.
Midea is also committed to meeting the 25% Domestic Content Level (TKDN) for its products. This target is in support of the government’s "Proudly Made in Indonesia" program in line with Presidential Instruction No. 2 of 2022. The factory in Indonesia also adds to Midea’s global network of AC production facilities, which now numbers 41 factories worldwide.