Reported by Yoshiharu Osumi, HVAC&R Advisor, Indonesia
Markets for many consumer durables have continued to dwindle after peaking in 2013. After showing a continuous downturn through the first half of 2016, the market size is expected to bottom out in the second half of 2016, and will regain an upturn again toward the end of the year.
However, since Indonesia has a hot climate, potential demand for air conditioners always exists. Therefore, demand for air conditioners, without falling into negative growth, has continued to register positive growth even after 2013, attaining an yearly growth rate of about 5 to 8% during the period spanning 2013 to 2016.
The total market for small to large air conditioner models in 2016 reached 3.0 million units, up 6% over the previous year, valued at US$1 billion. Although this growth rate is not high when compared to the 20 to 30% growth registered previously, the level of air conditioner demand in Indonesia may be said to be relatively high since it has never fallen into negative growth. A breakdown of demand in terms of value shows that the share of single-split air conditioners accounts for 65%, and that of packaged air conditioners (PACs) accounts for 15%.