Government Initiatives to Promote the Use of Agriculture Equipment Coupled with Increasing Penetration of Mechanization will Drive the Market over Long Term: Ken Research

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  • 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

  1. Rutan Indonesia
  2. Karya Hidup Sentosa – Quick
  3. Kubota Indonesia
  4. Yanmar Indonesia
  5. Traktor Nusantara

Altrak 1978

  1. Satrindo Mitra Utama
  2. 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: –

https://www.kenresearch.com/agriculture-and-animal-care/agriculture-equipment/thailand-agricultural-machinery-market-outlook/344772-104.html

https://www.kenresearch.com/agriculture-and-animal-care/agriculture-equipment/us-tractor-and-combine-harvesters-market-outlook/278585-104.html

https://www.kenresearch.com/agriculture-and-animal-care/agriculture-equipment/philippines-agricultural-equipment-market-outlook/248571-104.html

Contact Us: –
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

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