Report Overview

Indonesia Agriculture Equipment Market – Industry Trends & Forecast Report, 2031

Indonesia Agriculture Equipment Market size was estimated at USD 3.36 billion in 2024. During the forecast period between 2025 and 2031, Indonesia Agriculture Equipment Market size is projected to grow at a CAGR of 6.5% reaching a value of USD 5.22 billion by 2031. Prominent drivers of the market include the growing push toward agricultural mechanization, strong government initiatives, and rapid technological advancements in farming machinery. With agriculture forming a critical part of Indonesia’s economy and employing a large workforce, mechanized solutions are increasingly replacing manual labor due to their cost-efficiency and effectiveness. Investment in R&D—especially in combine harvesters—aims to reduce post-harvest losses and grain damage. However, challenges such as fragmented land holdings and small farm sizes hinder the widespread adoption of such machinery. To address this, the government is investing in training programs and promoting compact, user-friendly equipment. A USD 538 million national budget has been allocated to boost local machinery production. Java leads in demand for hand tractors, while combined harvester usage is rising in other regions. The adoption of disc ploughs and under-40HP tractors is also increasing, especially in dry and wet field operations, supported by ongoing rice science R&D to enhance yields.

Agriculture Equipment – Overview              

Agriculture equipment refers to the machinery and tools used in farming and agricultural practices to enhance productivity, efficiency, and crop yield. These include tractors, harvesters, plows, seeders, irrigation systems, sprayers, and other implements designed for soil preparation, planting, harvesting, and post-harvest operations. Modern agriculture equipment often incorporates advanced technologies like GPS, automation, and IoT to support precision farming. By reducing manual labor and increasing operational speed, such equipment plays a vital role in meeting the growing global demand for food. It is essential for both small-scale and large-scale farmers to improve agricultural sustainability and profitability.

Indonesia Agriculture Equipment Market

Growth Drivers

Government Mechanization Initiatives and Subsides

The government has been actively taking measures to boost the growth of Indonesia Agriculture Equipment Market through robust mechanization initiatives and subsidy programs. A substantial budget of USD 538 million has been allocated to boost domestic production of agricultural machinery, reduce import dependency, and support food self-sufficiency. Investments in R&D, especially in rice science, aim to improve yields on both fertile and marginal lands. Programs such as “Taxi Alsintan” and “Petani Milenial” promote machinery access and youth participation in agriculture. Additionally, initiatives like “Electrifying Agriculture” by PT PLN are encouraging the shift from diesel-powered to electric equipment, with growing interest in solar-powered alternatives for remote farming. The government is also addressing skill gaps through training programs that enable farmers to operate and maintain advanced machinery. Fertilizer subsidy reforms now target select commodities, with stricter oversight to curb misuse and ensure efficiency. Despite challenges such as small landholdings and labor shortages, these government-led efforts in mechanization, digitalization, and rural infrastructure are collectively strengthening Indonesia’s agricultural sector and accelerating the adoption of modern equipment across the country.

Challenges

High Upfront Costs and Limited Access to Financing

High upfront costs and limited access to financing could significantly restrain the growth of Indonesia Agriculture Equipment Market. Most smallholder farmers, who dominate the country’s agricultural landscape, find it difficult to afford modern machinery due to its high purchase and maintenance costs. Limited availability of affordable credit and lack of awareness about government subsidy schemes further hinder equipment adoption. Financial institutions often perceive agriculture as a high-risk sector, making loans less accessible. This financial barrier discourages mechanization, forcing many farmers to rely on traditional, labor-intensive methods, thereby slowing productivity improvements and overall market growth in the agricultural equipment sector.

Impact of Escalating Geopolitical Tensions on Indonesia Agriculture Equipment Market

Escalating geopolitical tensions can significantly impact Indonesia Agriculture Equipment Market by disrupting global supply chains, leading to delays and increased costs of importing essential machinery components. As Indonesia relies on several foreign suppliers for advanced equipment and technology, trade restrictions or export bans from key countries could limit availability. Additionally, currency fluctuations and rising fuel prices caused by global instability can inflate operational costs for farmers. Uncertainty in international relations may also discourage foreign investment in Indonesia’s agricultural sector. Together, these factors could hinder mechanization efforts, reduce equipment affordability, and slow the market’s overall growth momentum in the coming years.

Indonesia Agriculture Equipment Market

Segmental Coverage

Indonesia Agriculture Equipment Market – By Equipment Type

Based on equipment type, Indonesia Agriculture Equipment Market is divided into Tractors, Harvesting Equipment, Irrigation Equipment, Planting & Fertilizing Equipment, Plowing & Cultivating Equipment, Haying Equipment, and other equipment types segments. The tractors segment holds the highest share in Indonesia Agriculture Equipment Market by equipment type, supported by the sector’s growing contribution to the national GDP and increased adoption of mechanized farming. Two-wheel tractors, widely used in regions like Java, Sulawesi, and South Sumatra, are expected to dominate due to their suitability for small-scale farming. Key players such as CV. Karya Hidup Sentosa (QUICK) and PT Kubota Indonesia play a significant role in meeting regional demand. Global manufacturer TYM has also strengthened its presence by signing a long-term tractor supply contract, backed by biodiesel-compatible models tailored to local needs. Infrastructure improvements and farmland expansion policies continue to boost demand for both 2W and 4W tractors, consolidating the segment’s leading market position.

Indonesia Agriculture Equipment Market – By Power Output

Indonesia Agriculture Equipment Market by power output is divided into Below 30 HP, 31–70 HP, 71–130 HP, and Above 130 HP segments.

Indonesia Agriculture Equipment Market – By Application

On the basis of application, Indonesia Agriculture Equipment Market is segmented into Land Development & Seed Bed Preparation, Sowing & Planting, Harvesting & Threshing, Plant Protection, and Post-Harvest & Agro-Processing.

Competitive Landscape

Major players operating in Indonesia Agriculture Equipment 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. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In May 2025 - TYM signed a five-year tractor supply agreement worth KRW 35 billion with a leading agricultural machinery company in Indonesia. The deal begins with an initial delivery of 100 units and aims to gradually increase supply annually. This marks a major step in expanding TYM’s presence in Indonesia’s rapidly growing agriculture equipment market. Leveraging prior success in the Philippines, TYM seeks to strengthen its brand through reliable service, parts support, and long-term partnerships, aligning with Indonesia’s large-scale agricultural development initiatives.

• In March 2025 - Indonesia’s Ministry of Agriculture and Ministry of Manpower announced a strategic collaboration to modernize the agriculture sector. The initiative aims to boost productivity and achieve food self-sufficiency by developing modern agriculture clusters and distributing thousands of agricultural equipment units. With over 27,000 millennial farmers enrolled, the program also focuses on training skilled mechanics and instructors to ensure proper equipment usage. This government-led effort is expected to generate employment, improve rural livelihoods, and drive the growth of Indonesia’s agriculture equipment market.

Scope of the Report

By Equipment Type

• Tractors

• Harvesting Equipment

• Irrigation Equipment

• Planting & Fertilizing Equipment

• Plowing & Cultivating Equipment

• Haying Equipment

• Others (Sprayers, Threshers)

By Power Output

• Below 30 HP

• 31–70 HP

• 71–130 HP

• Above 130 HP

By Application

• Land Development & Seed Bed Preparation

• Sowing & Planting

• Harvesting & Threshing

• Plant Protection

• Post-Harvest & Agro-Processing

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Indonesia Agriculture Equipment Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising Food Demand due to Population Growth
         2. Increasing Adoption of Precision Agriculture & IoT
         3. Government Mechanization Initiatives & Subsides
      2. Restraints
         1. High Upfront Costs & Limited Access to Financing
         2. Inadequate Rural Infrastructure & Technical Skills
      3. Opportunities
         1. Integration of Drones & Smart Farming Technologies
         2. Adoption by Younger, Tech-Savvy Farmers
      4. Challenges
         1. Low Awareness & Limited Training on Modern Equipment
         2. Global Supply Chain Disruptions
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Indonesia Agriculture Equipment Market: Marketing Strategies
5. Indonesia Agriculture Equipment Market: Pricing Analysis
6. Indonesia Agriculture Equipment Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Equipment Type
         1. Tractors
         2. Harvesting Equipment
         3. Irrigation Equipment
         4. Planting & Fertilizing Equipment
         5. Plowing & Cultivating Equipment
         6. Haying Equipment
         7. Others (Sprayers, Threshers)
      2. By Power Output
         1. Below 30 HP
         2. 31–70 HP
         3. 71–130 HP
         4. Above 130 HP
      3. By Application
         1. Land Development & Seed Bed Preparation
         2. Sowing & Planting
         3. Harvesting & Threshing
         4. Plant Protection
         5. Post-Harvest & Agro-Processing
7. Competitive Landscape
   1. List of Key Players and Their End Users
   2. Indonesia Agriculture Equipment Company Market Share Analysis, 2024
   3. Competitive Benchmarking, By Oping Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
8. Impact of Geopolitical Tensions on Indonesia Agriculture Equipment Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Kubota Corporation
   2. PT Kubota Indonesia
   3. Yanmar Holdings Co., Ltd
   4. PT Yanmar Indonesia
   5. John Deere
   6. PT Wahana Inti Selaras
   7. CNH Industrial
   8. New Holland Agriculture
   9. AGCO
   10. Massey Ferguson
   11. Fendt
   12. CV. Karya Hidup Sentosa (Quick Tractors)
   13. PT Pindad (Persero)
   14. Traktor Nusantara
   15. PT Rutan Indonesia
   16. PT Altrak 1978
   17. PT Satrindo Mitra Utama
   18. PT United Tractors Tbk
   19. Other Prominent Players
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
       1. Secondary Research
       2. Primary Research
    4. Breakdown of Primary Research Respondents
    5. Assumption & Limitation

*Financial information of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1   Indonesia Agriculture Equipment Market Segmentation

Figure 2   Indonesia Agriculture Equipment Market Value Chain Analysis

Figure 3   Company Market Share Analysis, 2024

Figure 4   Indonesia Agriculture Equipment Market Size, By Value (USD Million), 2019–2031

Figure 5   Indonesia Agriculture Equipment Market Share, By Equipment Type, By Value (USD Million) 2019–2031

Figure 6   Indonesia Agriculture Equipment Market Share, By Power Output, By Value (USD Million) 2019–2031

Figure 7   Indonesia Agriculture Equipment Market Share, By Application, By Value (USD Million) 2019–2031

List of Tables

Table 1      Indonesia Agriculture Equipment Market Share, By Equipment Type, By Value (USD Million) 2019–2031

Table 2      Indonesia Agriculture Equipment Market Share, By Power Output, By Value (USD Million) 2019–2031

Table 3      Indonesia Agriculture Equipment Market Share, By Application, By Value (USD Million) 2019–2031

Table 4      Kubota Corporation Company Overview

Table 5      Kubota Corporation Financial Overview

Table 6      PT Kubota Indonesia Company Overview

Table 7      PT Kubota Indonesia Financial Overview

Table 8      Yanmar Holdings Co., Ltd Company Overview

Table 9      Yanmar Holdings Co., Ltd Financial Overview

Table 10    PT Yanmar Indonesia Company Overview

Table 11    PT Yanmar Indonesia Financial Overview

Table 12    John Deere Company Overview

Table 13    John Deere Financial Overview

Table 14    PT Wahana Inti Selaras Company Overview

Table 15    PT Wahana Inti Selaras Financial Overview

Table 16    CNH Industrial Company Overview

Table 17    CNH Industrial Financial Overview

Table 18    New Holland Agriculture Company Overview

Table 19    New Holland Agriculture Financial Overview

Table 20    AGCO Company Overview

Table 21    AGCO Financial Overview

Table 22    Massey Ferguson Company Overview

Table 23    Massey Ferguson Financial Overview

Table 24    Fendt Company Overview

Table 25    Fendt Financial Overview

Table 26    CV. Karya Hidup Sentosa (Quick Tractors) Company Overview

Table 27    CV. Karya Hidup Sentosa (Quick Tractors) Financial Overview

Table 28    PT Pindad (Persero) Company Overview

Table 29    PT Pindad (Persero) Financial Overview

Table 30    Traktor Nusantara Company Overview

Table 31    Traktor Nusantara Financial Overview

Table 32    PT Rutan Indonesia Company Overview

Table 33    PT Rutan Indonesia Financial Overview

Table 34    PT Altrak 1978 Company Overview

Table 35    PT Altrak 1978 Financial Overview

Table 36    PT Satrindo Mitra Utama Company Overview

Table 37    PT Satrindo Mitra Utama Financial Overview

Table 38    PT United Tractors Tbk Company Overview

Table 39    PT United Tractors Tbk Financial Overview