New Partner-Operated Plant Highlights Company’s Strategic
Commitment to Emerging Markets

JAKARTA, Oct. 23, 2025 — LG Electronics (LG) 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.

Now, through investment in the new partner-operated plant in Bekasi, LG will further expand production capacity and job creation, reinforcing its commitment to sustainable growth and community well-being. This move also reflects LG’s broader Global South strategy, which extends across R&D, manufacturing, sales and maintenance, while sustaining growth in North America and Europe. By establishing manufacturing plants in key markets such as Brazil, India and Thailand, LG is enhancing its flexibility to adapt to shifting global conditions.

“The new partner-operated facility in Indonesia underscores the tremendous progress we are making in advancing our Global South strategy,” said James Lee, president of the LG ES Company. “By strengthening local production capacity, we can better provide advanced air solutions that meet the needs of customers in Indonesia and surrounding markets, while driving growth across the region.”

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¹ Global Warming Potential of R32 refrigerant is 675.
² Tingkat Komponen Dalam Negeri.