AC Factory Boss Reveals Copper Wire Prices Have Surged Over 50%

The weakening of the rupiah against the US dollar, which recently breached Rp18,000, has been a major concern for many business players. However, for the air conditioning (AC) business, production cost challenges do not stem solely from exchange rate movements. Vice President of PT Flife Technologies Indonesia, Nicky, revealed that one of the biggest pressures facing the AC industry in early 2026 actually originates from the surge in copper prices on the global market, a material that is a primary component in manufacturing AC units. “At the beginning of this year, copper prices rose very sharply. From the end of 2025 in December to January alone, the increase was more than 50 per cent for copper prices. Meanwhile, AC is a product that uses a huge amount of copper in its units,” Nicky said during a media gathering in Jakarta on Monday. The raw material price hike has triggered a wave of price increases across the air conditioning industry. The pressure is not only felt in Indonesia but also in various countries dependent on the global AC component supply chain. “So at that time, it was not just the Indonesian market, but globally all AC units, all brands, all types experienced very drastic price increases,” he stated. Despite this, Nicky claimed the company has not made any price adjustments during the first six months of 2026. The company has chosen to absorb the price increase amidst cost pressures to maintain purchasing power and consumer comfort. Beyond raw material prices and exchange rates, the company also faces another, more fundamental challenge. As a relatively new brand in the Indonesian air conditioning market, it must compete with established players who have built their reputations over decades. “Our target this year is to increase by 100 per cent compared to last year. Last year, Flife reached around 50,000 units and this year’s target is 100,000 units. So our focus now is building customer trust and strengthening the brand in Indonesia,” Nicky said. Meanwhile, Andriyanto Setyawan, Professor of Refrigeration and Air Conditioning Engineering at Politeknik Negeri Bandung (Polban), explained that Indonesia’s annual AC demand is currently estimated at between 3 million and 5 million units. However, national production capacity remains below that figure, leaving the market opportunity wide open. “Indonesia is in the fifth to sixth position globally with a need for around 3 to 5 million units per year. Meanwhile, national production capacity for ACs has only reached about 2.4 million units per year,” he said. The long-term outlook for the AC industry is expected to continue growing. Several research institutions project global air conditioning market growth at between 5.3 per cent and 10 per cent per year, driven by rising global temperatures and increasing societal demand for comfort. “In the next three decades, it is estimated that around 5.4 billion AC units will be installed worldwide. This shows that the need for air conditioning will continue to increase and the market will keep expanding,” Andriyanto said.