Indonesia Agriculture Equipment Market Size Set to Reach USD 5.22 Billion by 2031

Published | 07 August 2025

Indonesia Agriculture Equipment Market is booming primarily due to the increasing demand for food resulting from population growth, the rising adoption of precision agriculture techniques and IoT technologies, and the government’s supportive initiatives and subsidies aimed at promoting mechanization of agriculture.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated Indonesia Agriculture Equipment Market size by value at USD 3.36 billion in 2024. During the forecast period between 2025 and 2031, BlueWeave expects Indonesia Agriculture Equipment Market size to expand at a significant CAGR of 6.5% reaching a value of USD 5.22 billion by 2031. The growth of Agriculture Equipment Market in Indonesia is propelled by the government’s strong push toward mechanization, supported by significant government initiatives and rapid technological advancements. Given the critical role of agriculture in Indonesia's economy and its large workforce, mechanized solutions are increasingly favored over manual labor for their superior cost-efficiency and effectiveness. R&D efforts, particularly for combine harvesters, are focused on reducing post-harvest losses and grain damage. Despite challenges posed by fragmented land holdings and small farm sizes, the government is addressing these issues through investments in training programs and the promotion of compact, user-friendly equipment. A national budget of USD 538 million has been allocated to bolster local machinery production. Regionally, Java leads the demand for hand tractors, while the use of combine harvesters is growing elsewhere. The adoption of disc plows and tractors under 40HP is also increasing, supported by ongoing rice science R&D to enhance yields.

Opportunity - Integration of Drones and Smart Farming Technologies

The growing integration of drones and smart farming technologies is expected to unlock significant growth opportunities for the players in Indonesia Agriculture Equipment Market in the coming years. A recent Declaration of Intent (DoI) between Indonesia and France reflects a strategic commitment to modernize the nation’s agricultural practices through global collaboration. The agreement emphasizes food security, farmer training, sustainable farming, and climate-resilient practices. It promotes advanced technologies such as greenhouse systems, precision irrigation, and the use of drones. For instance, Terra Drone, a leading drone solutions provider, has already been working to enhance agricultural productivity in Indonesia by offering aerial mapping, crop monitoring, and precision spraying services, reducing input costs and optimizing yields. The agreement also supports joint research in developing drought- and flood-resistant crops and strengthens agroecological education and training. As a result, Indonesia’s agriculture sector is poised for rapid transformation, with increased adoption of intelligent equipment and digital solutions expected to drive long-term market growth.

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Tractors Segment Leads Indonesia Agriculture Equipment Market

The tractors segment is the largest contributor to the growth of Indonesia Agricultural Equipment Market by equipment type, a position reinforced by the agricultural sector's increasing role in the national GDP and a growing trend toward mechanized farming. Two-wheel tractors are especially prominent in key agricultural areas like Java, Sulawesi, and South Sumatra, valued for their efficiency and suitability for small-scale farms. Domestic industry leaders such as CV. Karya Hidup Sentosa (QUICK) and PT Kubota Indonesia continue to meet this regional demand. Concurrently, international manufacturers like TYM are expanding their presence through strategic supply agreements and by offering products, such as their biodiesel-compatible tractors, that are specifically designed for local conditions. The segment's strong market position is further solidified by ongoing infrastructure development and government policies that support farmland expansion, which collectively drive the demand for both two- and four-wheel tractors.

Impact of Escalating Geopolitical Tensions on Indonesia Agriculture Equipment Market

Intensifying geopolitical tensions could have a multifaceted impact on Indonesia Agriculture Equipment Market by disrupting global supply chains, which could lead to increased costs and delays in the import of critical machinery components. As Indonesia is dependent on foreign suppliers for advanced equipment and technology, trade restrictions or export bans from key countries could severely limit the availability of necessary products. Furthermore, global instability can cause currency fluctuations and rising fuel prices, which would increase operational costs for farmers. The resulting uncertainty in international relations may also deter foreign investment in the country's agricultural sector. Collectively, these factors could impede mechanization efforts, diminish equipment affordability, and slow the market's overall growth trajectory during the forecast period.

Competitive Landscape

Indonesia Agriculture Equipment Market is highly fragmented, with numerous players serving the market. Major companies dominating the market include Kubota Corporation, PT Kubota Indonesia, Yanmar Holdings Co., Ltd, PT Yanmar Indonesia, John Deere, PT Wahana Inti Selaras, CNH Industrial, New Holland Agriculture, AGCO, Massey Ferguson, Fendt, CV. Karya Hidup Sentosa (Quick Tractors), PT Pindad (Persero), Traktor Nusantara, PT Rutan Indonesia, PT Altrak 1978, PT Satrindo Mitra Utama, and PT United Tractors Tbk. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisitions to expand their customer reach and gain a competitive edge over their competitors in Indonesia Agriculture Equipment Market.

Don’t miss the business opportunity of Indonesia Agriculture Equipment Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The report's in-depth analysis provides information about growth potential, upcoming trends, and Indonesia Agriculture Equipment Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Indonesia Agriculture Equipment Market along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

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