• To upgrade industries and climb the technological ladder, a strong partnership with the private sector will be crucial for the country.
• The growing GDP, improving investment in infrastructure and low labor costs will provide a significant thrust to the manufacturing sector over the coming years.
• The agricultural machinery market in Indonesia is estimated to reach over USD 740 million by 2020
Ken Research announced its latest publication on “Indonesia Agricultural Machinery Market Outlook to 2020 – Integration of Small Farm holders and Government Support to Foster Growth” provides a comprehensive analysis of the agricultural machinery market in Indonesia. The report covers aspects such as the market size on the basis of sales volume and revenue for Tractors, Combine Harvesters, Rice Transplanters and Tractor Implements. The segmentation for Tractors, Combine Harvesters and Rice Transplanters has been created on the basis of Horsepower while the segmentation for Tractor Implements has been showcased by products. The report also covers the market share, competitive landscape and working business model of major manufacturers, along with warranty policies and distribution channels of agricultural equipments. The report also covers farm ownership by different food and estate crops with expected changes in cropping pattern in the coming years. In addition to this, the report also covers the country overview, government regulation and agricultural overview of Indonesia. GDP, Per Capita Income and Population Demographics are analyzed in country overview. Land under cultivation, Changes in cropping patterns, farm holding structure and scale of mechanization are covered in agricultural overview. Regulatory policies, the import duty structure, subsidies and financing options are covered in government regulation. This report will help industry consultants, agricultural machinery manufacturers and dealers, retail chains, potential entrants and other stakeholders to align their market centric strategies according to the ongoing and expected trends in the future.
The sales of agricultural machinery and implements are projected to reach over 230,000 units by 2020. 2 wheel tractors market in terms of revenues is likely to dominate in the future. 4 wheel tractors market is anticipated to report second position in the market in terms of revenues in 2020. This will be followed with Tractor implements, combine harvesters and rice transplanters.
In rice growing and in other small size farms, small scale two wheel tractors are most popular due to its adaptation to the local economic conditions and management scales. The sustained popularity of hand tractors for land preparation and ideal soft soil conditions will augment its sales in future. Java will continue to be the area with the highest demand and sales of hand tractors in the country.
The demand for four wheel tractors will continue to arise from Sumatra and Kalimantan in the future, due to the above average farm holding size in these regions. Moreover, the higher production for palm oil, rubber and sugarcane in these regions has also boosted the demand for 4 wheel tractor sales.
The level of mechanization in harvesting in Indonesia is still very low as a majority of farmers still use manual methods. Combine harvesters are mainly demanded by a limited target audience and farmers and agricultural cooperatives and this trend is expected to continue in the future. The level of mechanization with respect to transplanting is still very low as farmers prefer to engage in manual methods of transplanting as this involves only cost of labor been employed on the farm. The sale of rice transplanters is projected to increase in the coming years. Indonesia is on the path towards self-sufficiency in terms of rice production and consumption due to which a majority of farmers in the country are expected to continue rice farming. The growth in sales of two wheel and four wheel tractors is complemented with the growth in tractor implements as a majority of farmers purchase tractor implements along with new tractors. The sale of tractor implements has been estimated to reach is anticipated to grow in tandem with the sales of 2 wheel and 4 wheel tractors.
“It is advisable for new entrant to provide great after sales support services such as on site mechanics support even during the peak seasons or timely commitment of services or otherwise free spares. Moreover, the farmers in Indonesia have lower credit worthiness due to limited farm income, which refrain them to purchase farm machinery. In lieu to this, the farm equipment companies should instigate separate leasing department that can provide farm machinery to the farmers with limited finance”, according to Research Analyst, Ken Research.
Key Topics Covered in the Report:
Country Overview: Gross Domestic Product (GDP) of Indonesia, Key Factors Driving Growth in GDP, Contribution to GDP: Agriculture, Manufacturing and Service Sector, Population Demographics, Logistics Cost
Agricultural Overview: Total Land under Cultivation, Distribution by Major Crops, Rice, Sugarcane, Cassava and Rubber, Palm Oil and Maize, Changing Cropping Patterns in Indonesia and Factors Driving Change
Farm Holding Structure in Indonesia: Number of Farms and Farm Holding Size, Nature of Ownership, Food and Estate Crops
Regulatory Policies Impacting Farm Holding Structure: Regulatory Structure, Import Duty Structure, Certification Requirements, Subsidies, Government Taxes, Finance Options
Agricultural Practices: Extensive and Intensive Farming, Scale of Mechanization, Irrigated and Non-Irrigated Land
Market for Tractor and Agricultural Implements: Indonesia Agricultural Equipment Market, Tractor Market, Rice Transplanter Market, Combine Harvester Market, Tractor Implements Market
Key Factors Driving Growth of Agricultural Equipment Market
Market Share and Competitive Landscape of Leading Manufacturers in Indonesia Agricultural Equipments Market
Competitive Landscape of Leading Manufacturers in Indonesia Agricultural Equipments Market
Price Range for Agricultural Equipments
Geographical Distribution of Category Wise Sale of Tractors and Combine Harvesters
Working Model of Major OEM’s in Indonesia Agriculture Equipment Market
Custom Hiring Market
Export-Import of Agricultural Equipments in Indonesia
Future Projections for Indonesia Agricultural Equipment Market
Customer Insight: Decision Making Process for Procurement of Agricultural Equipments, Usage Pattern for Major Agricultural Equipments in Indonesia
Key Products Mentioned in the Report
Four Wheel Tractors
Tractor Implements (Rotavator, Disc Plough, Disc Harrow, Land Leveler, Sprayers/ Spreaders)
Companies Covered in the Report
PT Kubota Machinery Indonesia
Quick Tractors (CV. Karya Hidup Sentosa)
PT Rutan (Agrindo)
Traktor Nusantara (Massey Ferguson and Tym)
PT Satrindo Mitra Utama (John Deere)
Altrak 1987 (New Holland)
For more information on the report, refer to the link below:
Ankur Gupta, Head Marketing & Communications