Japanese electronics giant, Sharp Electronics, has commenced construction on a $40 million air conditioning factory in Indonesia.
The Karawang factory in West Java will commence operations in 2023 and will be used as an export base for ASEAN countries.
The new plant take up 3.5 hectares of land at Karawang International Industrial City (KICC).
It will have a production capacity of between 900,000 and 1.05 million AC units per year.
Sharp Electronics Indonesia president, Shinji Teraoka, said the goal is to increase market share by 30 per cent and maintain a number one position in the Indonesian market.
Indonesia’s Industry Minister, Agus Gumiwang Kartasasmita said Sharp's investment would help Indonesia develop its manufacturing industry and reduce imports of electronic goods.
Ministry data showed that Indonesia imports around $25 billion worth of electronics and $13 billion of components every year.
Last year alone Indonesia spent $495 million on imported air conditioners.
Sharp has been developing Indonesia as its new base for manufacturing in recent years with the relocation of washing machine production from Thailand to Indonesia in 2019.