In 2024, the value of Indonesian agricultural machinery exports to various countries reached approximately USD 90 million, equivalent to IDR 1.4 trillion. The exported products include machinery and equipment for pre-harvest, harvest, and post-harvest activities, such as two-wheeled tractors, cultivators, irrigation pumps, hand sprayers, rotavators, soil processing machines, and crop drying machines. With 67 national companies producing agricultural tools, Indonesia is a key player in the agricultural machinery industry. It has 5,629 people employed in the sector. The Ministry of Industry is promoting growth to support the mechanisation of agriculture.
Several measures to bolster the national agricultural machinery industry. These include the introduction of a product standardisation programme for agricultural tools and machinery, to ensure quality and efficiency in the field. The Ministry of Industry is also integrating the Making Indonesia 4.0 policy. Furthermore, investment in the medium-to-high technology sector is being encouraged, both domestically and internationally, to accelerate technology adoption and transfer. These are facilitated through fiscal incentives such as tax holidays, mini tax holidays, and tax allowances. Furthermore, collaboration between industry players, academics, and research institutions is encouraged, one such example being the establishment of the Indonesia Manufacturing Centre. Moreover, business matching between industries and users of agricultural machinery is facilitated, with research institutions and academics serving as providers of technology and innovation to produce agricultural machinery products that align with the characteristics of Indonesian agriculture.
