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Ken Research releases report on Indonesia’s agri machinery outlook
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Friday, 04 November, 2016, 08 : 00 AM [IST]
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Jakarta
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fiogf49gjkf0d fiogf49gjkf0d Ken Research released its latest report, titled Indonesia Agricultural Machinery Market Outlook to 2020. It provides an inclusive analysis of the agricultural equipment market in the the country and will help readers identify the ongoing trends in the industry and anticipated growth in future depending upon the changing industry dynamics in the coming years.
The report will help industry consultants, agricultural equipment manufacturers, dealers, retail chains, potential entrants and other stakeholders align their market-centric strategies according to ongoing and expected trends in the future.
A research analyst at Ken Research said, “There are multiple agricultural events which are organised in Indonesia that allows farm equipment manufacturers to display their products in the market.”
“These events offer a great opportunity to build a business to network with both the local and the overseas palm oil industry and other related industries right on the spot,” he added.
“Moreover, the farmers in Indonesia have lower credit-worthiness due to limited farm income, which refrain them from purchasing farm machinery. In lieu of this, the farm equipment companies should instigate separate leasing departments that can provide farm machinery to farmers with limited finance,” the analyst added.
The products covered in the report include four-wheel tractors, power tillers, combine harvesters, rice transplanters and tractor implements (rotavators, disc ploughs, disc harrows, land levellers, sprayers and spreaders).
The companies covered in the report include PT Kubota Machinery Indonesia, Yanmar 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), Maxxi, Galaxy and Tanikaya.
Agricultural tractors are the most durable agricultural machinery. An agricultural tractor in Indonesia can efficiently perform up to 10-15 years on an average.
In many cases, the owners could only operate the tractor in a limited radius due to fragmented fields and inadequate access to users’ fields due to consequence of poor infrastructure conditions.
As tractor annual use increases, the repair and variable costs per hectare tend to slightly decrease. Hence many farm owners focus on maintaining the tractors to increase its life
The Indonesian Economist Association (ISEI) and Indonesia Chamber of Commerce and Industry have laid down a new scheme PISAgro, which stands for Partnership for Indonesia’s Sustainable Agriculture.
The scheme has been devised to create more effective associations between institutions and small farmers in order to optimize production methods and overcome issues of insufficient access to high-quality seeds and fertilisers.
Moreover, in 2014, the agricultural tools and machineries support was formed as a grant and was given to farmer groups/farmer associations/UPJA in the form of hand tractors, water pumps, transplanters, choppers and cultivators.
Farms under food cropsare owned by farmers and cooperatives. The majority of agricultural land under food crops is owned by small farmers, due to which 56 per cent of farms are below or equal to 0.5 hectares.
The current situation has been changing with the consolidation of farm land by cooperatives and contractors. Indonesia has been experimenting with new machines in specific pilot areas both on operational capabilities and testing procedures.
To promote agricultural mechanisation, the ministry of agriculture (MOA) formulated a strategy called Custom Hiring for Rental Services of Agricultural Machinery (CHRSAM) in 1998.
As a result of a strong governmental support, Indonesia has more than 12,000 institutions that support the rice production by custom hiring. The number of agricultural machinery increased very slowly with utilisation under 35 per cent of its optimum capacity.
This raises the demand for custom hiring in Indonesia because the usage of agricultural machinery goes underutilised in Indonesia, leading to losses to the farmers.
There are other rental hiring methods as well which are popular in Indonesia. For example, farmers owning agricultural machinery also receive contracts for hiring from neighboring farmers.The contractual work between the tractor owner and the hiring farmer is made directly and agreed on in advance at the beginning of the season.
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