Panasonic making larger air conditioners in Indonesia, plans exports to Nigeria

31, Jul. 2019

Indonesian Industry Minister Airlangga Hartarto (right) visits Panasonic’s Jalan Raya Bogor factory in East Jakarta on Tuesday.
Indonesian Industry Minister Airlangga Hartarto (right) visits Panasonic’s Jalan Raya Bogor factory in East Jakarta on Tuesday.

JAKARTA, NNA – Panasonic Corp. is producing larger, more powerful air conditioners in Indonesia, counting on future demand from offices and shops, while it plans to start exporting to Nigeria later this year.

PT Panasonic Manufacturing Indonesia (PMI) said on Tuesday that it had begun local production of four air conditioner models with 2 to 2.5 horsepower in early July, shifting some capacity from Malaysia. Previously, PMI was making smaller units and importing larger models from Malaysia.

PMI has been producing smaller models ranging from 0.5 to 1.5 horsepower, according to a Panasonic spokesman in Tokyo. A unit with 1.5 horsepower (about 4 kilowatts) is suitable for a small office measuring 23 to 36 square meters, he said.

The wholesale prices for the more powerful models range from 4.95 million to 8 million rupiah ($353 to $570), said an official at PT. Panasonic Gobel Indonesia, a local sales subsidiary.

Indonesia is both a large consumer market and an important electronic production base for Panasonic, President Commissioner of PMI Rachmat Gobel told reporters.

In response to a government request, Panasonic will increase the local content for its air conditioners from the current 40 percent and reduce imports of finished units, he said.

“At the end of this year, we will export ACs with 2HP capacity to Nigeria,” Gobel said.

PMI can produce 500,000 air conditioners annually. It exports 20 percent of its output of electronics products, which are mainly water pumps audio equipment and refrigerators.

“With this relocation, it is estimated that we can reduce imports of AC products worth 300 billion rupiah, and we will increase our export value by 30 to 40 percent next year,” Gobel said.

Indonesia is trying to develop its automobile, electronics, chemical, food and beverage and textile sectors, Industry Minister Airlangga Hartarto told reporters on Tuesday.

“Our target for the electronics industry is to strengthen import substitution and increase exports,” he said.