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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)

Region:Asia

Author(s):Deepanshu Arora, Fanindra Tibrewal

Product Code:KR1044

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Published On

February 2021

Total pages

115

About the Report

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)”provides a comprehensive analysis on the performance of the agriculture equipment industry in Indonesia. The report covers various aspects including sales value, volume, trends & developments, issues & challenges faced by the industry, competition landscape, financing players, and others. It also covers the country overview, regulatory framework, agricultural overview of Indonesia, land under cultivation, changes in the cropping patterns, farm holding structure & scale of mechanization. Indonesia agriculture equipment market report concludes with the projections for the future of industry including forecasted sales value and volume; future projections by product type and regional demand by the year ending 2025, COVID-19 impact, and analysts’ take on the future.
Indonesia Agriculture Equipment Market


Indonesia Agriculture Equipment Market Overview and Size:

The revenues from the overall agriculture equipment market decreased at a single-digit CAGR of (-8.7%) during the review period 2014-2020. The contribution of the tractor market to the overall market stood at more than 50.0% in terms of revenue and more than 90% in terms of sales volume during 2020. Combine Harvesters have been the second-largest category, to the overall revenues of the agriculture equipment market largely owing to their benefit to speed up harvesting time.
 

Indonesia Agriculture Equipment Market Segmentation

Indonesia Tractors Market: Tractors Sales Volume and Revenue took a fall during 2014-2020 outlook periods at a negative CAGR of 6.8% and 4.6% respectively due to small landholding size, poor access to credit & financial institutions & deteriorating resource base which are collectively obstructing the growth of tractors. 4W Tractors have been segmented on the basis of power out of which less than 40HP were the most preferred in Indonesia. On the other hand, 2W tractors have gaining traction due to a surge in the total number of farm households & agricultural cooperatives.

Indonesia Combine Harvesters Market: Combine harvester market value & volume showcased a constant growth pattern along with a positive CAGR of 6.1% each during the 2014-2020 outlook period. Combine harvesters of 70 hp and below accounted for the highest total sales of combined harvesters. Various government reforms including the fertilizer subsidy policy and seed development policy were aimed at aiding the revival of displaced farmers.

Indonesia Rice Transplanters Market: Rice transplanter market value and volume showcased volatile growth patterns during the 2014-2020 outlook period. Rice transplanters are not popular in the retail market as they are capital intensive and require heavy training for operations.

Indonesia Implements Market: Revenue from the implements segment increased at a CAGR of 4.7% during 2014-2020. Demand for tractor implements is complimentary to the sale of 2W & 4W tractors since the majority of farmers procure implements along with tractors. Rotavator and plows are the most preferred and demanded tractor implement as they help in seedbed preparation and plowing of land.

By Regional Demand (Jawa, Sulawesi, Kalimantan, Sumatra, and Others): Java region dominated the tractors and rice transplanter product segment during 2020. However, Sulawesi region took lead for combine harvesters in terms of sales volume during the year 2020.
 

Comparative Landscape of Indonesia Agriculture Equipment Market

Competition within the Indonesia agriculture equipment market was observed to be moderately fragmented with the dominance of international brands such as Yanmar, Kubota, and other local manufacturers. Quick dominated the 2W tractor segment and Kubota took lead in terms of sales volume for the 4W tractor segment during 2020. For the combine harvesters segment, Yanmar and Kubota collectively dominated with over 70% sales volume during 2020 in Indonesia. PT Yanmar also showcased dominance towards the rice transplanter segment in 2020. These companies compete on the basis of parameters such as price, products offered, number of tractor variants, distribution network, and after-sales service.
 

Indonesia Agriculture Equipment Market Future Outlook and Projections

The mechanization rate for land preparation is higher in Indonesia and it is forecasted to get mechanized further as the farmers are likely to increase the usage of disc plow on the farms. Also, the Indonesian government plans to boost national production of local agricultural machinery & has prepared a budget worth $538 Mn for machinery development.

By Product Segment - Combine harvesters are mainly demanded by a limited target audience and farmers and agricultural cooperatives and this trend is also expected to continue in the near future. Manufacturers have invested in Research and Development to minimize post harvest loss and reduction in grain damage during harvesting.

By Regional Demand - Java region will continue to be the area with the highest demand & sales of hand tractors in the country. Demand for 4W tractors will continue to arise from Sumatra and Kalimantan regions in the future, due to the above-average farm holding size in these regions.

Products

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

Companies

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

  • PT. Rutan Indonesia
  • CV. Karya Hidup Sentosa - Quick
  • PT. Kubota Indonesia
  • PT. Yanmar Indonesia
  • PT. Traktor Nusantara
  • Altrak 1978
  • PT. Satrindo Mitra Utama
  • PT. 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)

Table of Contents

1. Executive Summary (Industry Overview, Competition Scenario, Industry Bottlenecks Faced / Challenges, Industry Revenue & Volume Growth 2014, 2019 & 2025; Trend Change Facilitating Growth of the Industry and Future Strategies / Way Forward)

2. Country Overview (Country Demographics, GDP & other Related Statistics, Trade Scenario, Geographical Location and Major Industries)

3. Agriculture Overview / Scenario in Indonesia

3.1 Agricultural Indicators in Indonesia & Agricultural Land Area by Utilization in Indonesia, 2014 & 2018

3.2 Agricultural GDP of Indonesia & Production of Top 5 Crops (Oil Palm Fruit, Rice / Paddy, Maize, Sugarcane and Cassava) in Indonesia, 2015-2019

3.3 Export & Import of Food Crops in Indonesia – By Value & Volume, 2014-2018

3.4 Relevance of agriculture in selected APEC member economies (Contribution of Agriculture, Forestry & Fishing towards Overall GDP, 2017)

3.5 Significance of Technology in Indonesia Agriculture Equipment Market (Agribusiness Tools, Digital Marketplace Tools and Digital Tools; Map of Technology and Maturity Stage in Indonesia Agriculture Ecosystem)

4. Cropland Planting Trends in Indonesia, 2015-2019

4.1 Production of Small-Holder Estate Crops, 2015-2019

4.2 Production of Large-Holder Estate Crops, 2015-2019

4.3 Paddy / Rice Production in Indonesia (Paddy Production, Paddy Harvested Area, Revenue from Rice Segment and Rice Consumption by Age, 2015-2020)

4.4 Cropping Pattern of Rice in Indonesia (Cropping Cycle of Rice in Indonesia, Major Rice Producing Regions and Average Temperature in Major Agricultural Regions during Cropping Cycle)

5. How Farmers Operate in Indonesia? (Farm Holding Size, Average Smallholder Household, Productivity & Technology, Major Staple Crops grow by Indonesian Farmers, Major Cash Crops grown by Indonesian Farmers and Major Crops Exported from Indonesia)

5.1 Characteristics of Farmers & Cross Comparison of Farm Labor Wages, Dec’2019-2020 (Nominal Wages and Real Wages)

5.2 Farmer Decision Making Parameters (Region / Soil Properties, Land Holding Size, Type of Crops, Brand Value & Price, Credit Availability, Fuel Efficiency and After Sales Services & Maintenance Cost)

6. Supply Side of Indonesia Agriculture Machinery Market

6.1 Market Ecosystem: Major Players and other Entities (Equipment OEMs, Rental & Second Hand Equipment Dealers, Financing Companies and Regulatory Bodies)

6.2 Value Chain Analysis (Operating Cycle, Margins and Challenges)

6.3 Trade Scenario in Indonesia Agriculture Machinery Market, 2015-2019 (Import Value & Volume; and Export Value & Volume by Major Countries, 2015-2019)

6.4 Growth Drivers, Trends and Developments (Technological Advancements, Bringing Precision Farming in Indonesia, Government Efforts, Agricultural Mechanization
and Increasing Supply of Food Crops due to Rising Population)

6.5 Growth Restraints, Issues and Challenges (Stringent Import & Finance Regulations, Lack & Low Quality of Farm Labor, Poor Access to Credit / Financial Institution; Use Low Level of Technology, & Slow Development of Food Industry, Deterioration of Infrastructure & High Cost of Equipment; Poor Farmer Training / Education Institution & Land Conversion, Small Land Holding & Climatic Changes

6.6 Regulatory Landscape in Indonesia Agriculture Machinery Market

6.6.1 Government Role towards Domestic Manufacturers and Importers

6.6.2 Import Duty Structure in Indonesia

6.6.3 Institutions’ and Testing Facilities

6.6.4 Policy Adoption for Agriculture and Govt. Budget Allocation to Agricultural Sector, 2017-2020

6.6.5 Import Regulations for Agriculture Machinery in Indonesia

6.6.6 CO2 Emissions in Agriculture Sector: Indonesia

7. Indonesia Agriculture Equipment Market

7.1 Indonesia Agriculture Equipment Market Size by Value and Volume, 2014-2020

7.2 Indonesia Agriculture Equipment Market Segmentation by Product Type (Tractors, Combine Harvesters, Rice Transplanters and Implements), 2014-2020

7.3 Indonesia Tractors Market, 2014-2025

7.3.1 Indonesia Tractors Market Size by Value and Volume, 2014-2020

7.3.2 Indonesia Tractors Market Size, Segmentation by 2W Tractors & 4W Tractors; by Horse Power Type (Less than 40HP, 40HP-70HP and Above 70HP) and by Region (Jawa, Sulawesi, Sumatra, Kalimantan and Others), 2014, 2019 and 2020

7.3.3 Market Share of Major Players (Quick, Yanmar, Kubota, John Deere, New Holland and Others) Operating in Indonesia 2W Tractors Segment and 4W Tractors Segment on the Basis of Sales Volume, 2019 and 2020

7.3.4 Indonesia Tractors Market Future Projections by Value and Volume and by Tractor Type (By 2W & 4W Tractors; By Power – Less than 40HP, 40HP-70HP and Above 70HP; and By Region – Jawa, Sulawesi, Sumatra, Kalimantan & Others), 2020-2025

7.4 Indonesia Combine Harvesters Market, 2014-2025

7.4.1 Indonesia Combine Harvesters Market Size by Value and Volume, 2014-2020

7.4.2 Indonesia Combine Harvesters Market Segmentation by Horse Power Type (70HP & Below and Above 70HP) and by Region (Sulawesi, Java, Sumatra, Kalimantan and Others), 2014, 2019 and 2020

7.4.3 Market Share of Major Players (Yanmar, Kubota, Quick and Others) Operating in Indonesia Combine Harvesters Market on the Basis of Sales Volume, 2019 & 2020

7.4.4 Indonesia Combine Harvesters Market Future Projections by Value & Volume and By Combine Harvester Type (70HP & Below and Above 70HP; and by Region – Sulawesi, Java, Sumatra, Kalimantan and Others), 2020-2025

7.5 Indonesia Rice Transplanters Market, 2014-2025

7.5.1 Indonesia Rice Transplanters Market Size by Value and Volume, 2014-2020

7.5.2 Indonesia Rice Transplanters Market Segmentation by Region (Jawa, Sulawesi, Kalimantan, Sumatra and Others), 2014, 2019 and 2020

7.5.3 Market Share of Major Players (Yanmar and Kubota) Operating in Indonesia Rice Transplanters Market on the Basis of Sales Volume, 2019 and 2020

7.5.4 Indonesia Rice Transplanters Market Future Projections by Value and Volume and by Region (Jawa, Sulawesi, Kalimantan, Sumatra and Others), 2020-2025

7.6 Indonesia Implements Market, 2014-2025

7.6.1 Indonesia Implements Market Size by Value and Volume, 2014-2020

7.6.2 Indonesia Implements Market Segmentation by Type of Implements (Rotavator, Plough, Harrow, Fertilizer Spreads and Others), 2019 and 2020

7.6.4 Indonesia Implements Market Future Projections by Value and Volume and By Type of Implements (Rotavator, Plough, Harrow, Fertilizer Spreads and Others), 2020-2025

8. Snapshot on Rental Agriculture Equipment Business in Indonesia

8.1 Rental Scenario in Indonesia Agriculture Equipment Market (Market Structure Analysis, Product Category Analysis, Emerging Demand Regions, , Competition Analysis and Pricing Analysis)

8.2 Operating Cycle, Rental Mechanism and Challenges / Pain Points in Indonesia Agriculture Equipment Rental Market

8.3 Role of Government in Indonesia Agriculture Equipment Rental Market (Role of UPJA and Quantity of Machinery Rented Out by UPJA in Indonesia)

9. Snapshot on Second Hand Machinery Market in Indonesia

9.1 Parameters Considered to Evaluate Indonesia Second Hand Agriculture Equipment Market - Age of Equipment, Brands Preferred, Product Categories Preferred, Entities Involved in Sale of Machinery and Channels Adopted for Purchasing Machinery

9.2 Operating Cycle in Second Hand Agriculture Equipment Market

10. Financing for Agriculture Machinery in Indonesia

10.1 Overview of Financing of Agriculture Equipment in Indonesia - Limited Availability of Capital among Indonesian Farmers, Various financial institutions that offer loan on agriculture equipment and Cross Comparison of Major Agriculture Equipment Companies (PT. Kubota, C.V Hindup Sentosa, John Deere, PT. Yanmar, Altrak 1978 New Holland) – Basis Major Financing Partners, Down Payment, Interest Rate and Warranty Period)

10.2 Cross Comparison of Financial Institutions (JTO Finance, Equity Finance, BAF Finance, Asia Finance and Orix Finance) offering Agriculture Equipment on Loan – Year of Establishment, Headquarters, Product Type, Brands & Regional Presence

11. Comparative Landscape in Indonesia Agriculture Machinery Market

11.1. Cross Comparison of Major Players Operating in Indonesia Agriculture Equipment Market – Presence, Establishment Year, Distributors / Dealers / Partners, After Sales Services, Financing Tie-Ups, Regional Presence, SKUs, Best Selling Products, Growth Strategy, Second Hand Products, Revenue, Sales Volume and Average Pricing

11.2 Best Selling Product Variants of Major Brands (PT Kubota Indonesia, Quick - CV. Karya Hidup Sentosa, John Deere, PT Yanmar Indonesia, Altrak 1978 New Holland, PT Rutan Indonesia, Massey Ferguson, Maxxi, Tanikaya, Galaxy and SAAM) Operating in Indonesia Agri Equip Market

11.3 Company Profiling of Major Players Operating in Indonesia Agriculture Equipment Market basis – Presence in Indonesia, USP, Product Specialization, Distributor Base, KPIs, Workshops, Financial Performance, Best Selling Products, Marketing Network, Production Capacity, Online Store, Tie-Ups & Partnerships, Brand Portfolio, Milestones, Employee Base, After Sales Support, Recent Developments and Future Plans / Outlook)

11.4 PT Kubota Indonesia

11.5 PT Yanmar Indonesia

11.6 CV Karya Hidup Sentosa – Quick

11.7 PT Wahana Inti Selaras – John Deere

11.8 PT Rutan Indonesia

11.9 PT Traktor Nusantara

11.10 Others (Altrak 1978 New Holland and PT Satrindo Mitra Utama)

12. Indonesia Agriculture Equipment Product Analysis

12.1 Pricing Analysis of Indonesia Agriculture Equipment Market

12.2 Product Portfolio of Major Players (Kubota, Yanmar, Quick, John Deere and New Holland) in Indonesia Agriculture Equipment Market

13. Indonesia Agri. Equip. Market Future Outlook & Projections, 2020-2025

13.1 Impact of Covid-19 on Indonesia Agriculture Equipment Market (Lockdown Affects, Expected Shift towards Combine Harvesters in Indonesia; Initiatives to Improve Pandemic Situation and Final Conclusion)

13.1 Market Projections by Value and Volume, 2020-2025

13.2 Market Projections by Product Type – Tractors, Combine Harvesters, Rice Transplanters and Implements (Value and Volume), 2020-2025

14. Analyst Recommendations (Investment in 2W Hand Tractors / Tillers for New Entrants to Penetrate this Product Segment; 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 and Participating in Agricultural Exhibitions and Other Marketing Initiatives)

15. Appendix

15.1 Import-Export Scenario of Major Crops (Coffee, Spices, Fruit, Black Pepper and Palm Oil; Rice, Vegetables, Sugar, Wheat and Soya) and 10 year Production Trend of Rice, Maize and Soybean

15.2 Research Methodology  - Market Definitions, Abbreviations, Research Limitations, Definitions & Expansion of Proxy Inclusions; Market Sizing Approach of Indonesia Agriculture Equipment Market; Primary Research Sample Size Inclusion; Primary Research Approach; Correlation Matrix; and Regression Matrix

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