- Government plans to boost the national production of local agricultural machinery and has prepared a budget worth USD 538 Million for machinery development in Indonesia.
- The mechanization rate for land preparation is higher in Indonesia and it is forecasted to get mechanized further. Mechanization is also anticipated to increase the welfare of farm households & create employment opportunities in rural areas.
- Java will continue to be the area with the highest demand and sales of hand tractors in the country along with a forecasted revenue CAGR of 5.0% during 2020-2025.
- Penetration of combine harvesters is slowly increasing in cities other than Java & Sulawesi as the product segment is expected to replace rice transplanters in future.
Indonesia government plans to invest in R&D – Rice science to further improve yields on available favourable land while expanding rice production to frontier areas, where the rice plant must withstand harsher environments. Indonesian farmers are likely to increase the usage of disc plough on the farms over the long term. Working capacity of less than 40HP tractors with the single plough is gaining traction for both dry & wet fields.
Agriculture sector currently accounts for 14% of the nation’s GDP in accordance with Indonesia’s statistical department. The proportion is anticipated to increase in future leading to higher demand for agriculture equipment including both 2W & 4W tractors.
Demand for 4-wheel tractors will continue to arise from Sumatra and Kalimantan in the future, due to the above-average farm holding size in these regions. Among product segments, combine harvesters are mainly demanded by a limited target audience and farmers and agricultural cooperatives and this particular trend is expected to continue in the near future. Manufacturers have invested in R&D to minimize post-harvest loss and reduction in grain damage during harvesting.
COVID Impact on Indonesia Agriculture Equipment Market Sales Value & Volume: Restrictions were put in place thereby, causing a delay in the harvesting of major staple crops such as rice and further halt in farm operations. Due to the COVID-19 outbreak, the companies are now focusing on new strategies of assembling & producing machinery locally. Lowering trade barriers can also aid the country to diversify import sources to hedge the trade risks from other countries.
The report titled “Indonesia Agriculture Equipment Market Outlook to 2025 – By Tractors Market (2 Wheeled & 4 Wheeled Tractors; < 40HP, 40-70HP & >70HP Tractors; Combine Harvesters Market (Less than 70HP, 70HP and >70HP); Rice Transplanters Market; Implements Market (Rotavator, Plough, Harrow, Fertilizer Spreaders & Others); and Regional Demand of Agriculture Equipment (Java, Sulawesi, Sumatra, Kalimantan & Others)” by Ken Research suggested that the overall agriculture equipment market is further expected to grow in the near future as both existing companies and new entrants can focus on investment in 2W hand tractors/tillers; expansion in dealer network to widen their service capabilities; tie-ups between banks and private finance companies/institutions; focus on after-sales support services to gain customer attention; participating in agricultural exhibitions and other marketing initiatives. The market is expected to register a positive six-year CAGR of 6.1% and 5.7% in terms of sales value and volume respectively during the forecast period 2020-2025. Tractors market, combine harvesters market rice transplanters market and implements market in Indonesia is further expected to grow at revenue CAGR of 6.0%, 7.5%, 4.7% & 3.8% respectively and volume CAGR of 5.6%, 7.5% & 4.7% respectively during the forecast period 2020-2025.
Key Segments Covered: –
By Type of Agriculture Equipment
Tractors
By Two Wheeled and Four Wheeled Tractors
By Horse Power (HP)
Less than 40HP
40HP-70HP
Above 70HP
By Regional Demand
Jawa
Sulawesi
Sumatra
Kalimantan
Others (Includes remaining regions of Indonesia such as Bali, Papua and rest)
Combine Harvesters
By Horse Power (HP)
Less than 70HP and 70HP
Above 70HP
By Regional Demand
Sulawesi
Jawa
Sumatra
Kalimantan
Others (Includes remaining regions of Indonesia such as Bali, Papua and rest)
Rice Transplanters
By Regional Demand
Jawa
Sulawesi
Kalimantan
Sumatra
Others (Includes remaining regions of Indonesia such as Bali, Papua and rest)
Implements
By Implement Type
Rotavator
Plough
Harrow
Fertilizer Spreads
Others (Dozers, Front Loader, Hay Balers and Sprayers)
Agriculture Equipment Manufacturers Covered
- Rutan Indonesia
- Karya Hidup Sentosa – Quick
- Kubota Indonesia
- Yanmar Indonesia
- Traktor Nusantara
Altrak 1978
- Satrindo Mitra Utama
- Wahana Inti Selaras: John Deere
Other Players (Massey Ferguson, Maxxi, Tanikaya, Galaxy and SAAM)
Financing Companies Covered
JTO Finance
Equity Finance
BAF Finance,
Asia Finance
Other Companies (Mitsui Group and Hitachi Group Finance)
Key Target Audience
Agriculture Equipment Manufacturing Companies
Industry Associations
Regulatory Bodies
Financing Companies
Agriculture Equipment Distributors & Authorized Dealerships
Time Period Captured in the Report: –
Historical Period – 2014-2020
Forecast Period – 2020-2025
Key Topics Covered in the Report: –
Executive Summary
Country Overview
Agriculture Overview / Scenario in Indonesia
Cropland Planting Trends in Indonesia, 2015-2019
How Farmers Operate in Indonesia?
Supply Side of Indonesia Agriculture Machinery Market
Indonesia Agriculture Equipment Market
Indonesia Tractors Market, 2014-2025
Indonesia Combine Harvesters Market, 2014-2025
Indonesia Rice Transplanters Market, 2014-2025
Indonesia Implements Market, 2014-2025
Snapshot on Rental Agriculture Equipment Business in Indonesia
Snapshot on Second Hand Machinery Market in Indonesia
Financing for Agriculture Machinery in Indonesia
Comparative Landscape in Indonesia Agriculture Machinery Market
Indonesia Agriculture Equipment Product Analysis
Indonesia Agri. Equip. Market Future Outlook & Projections, 2020-2025
Analyst Recommendations
For More Information the research report, Click on the Below Link: –
Indonesia Agriculture Equipment Market Sales Value
Related Reports by Ken Research: –
Contact Us: –
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
