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Fast Facts

The global agriculture equipment/machinery market is expected to reach USD 243.4 billion by 2025, according to a new report by Grand View Research, Inc.

The adoption of modern technologies by farmers to increase farm yields and meet the growing demand for food supply is expected to be a key factor expected to drive market growth.

Agricultural equipment comprises a wide range of machinery and tools that are used in various processes of farming to improve output and enhance the overall crop quality. Traditional tools are now being replaced with various new agricultural equipment, which mainly include crop processing equipment and drip irrigation equipment.

The agriculture machinery market is growing with the introduction of innovative technologies in the field of agriculture. Farm machinery manufacturers are concentrating on integrating technologies such as Google Earth, GPS, and robotic systems into the present equipment for improving productivity. Another key reason for the predicted growth is the government subsidies and low rates offered to farmers in emerging countries to adopt agricultural machinery.

Progress in Agriculture Industry of Indonesia

The government has been able to increase agricultural efficiency by 48 percent over the past four years by encouraging agricultural modernization through agricultural tools and machinery (Alsintan) assistance.
“The use of Alsintan to encourage agricultural modernization can increase farming efficiency by 35 to 48 percent,” Director General of Agricultural Infrastructure and Facilities (PSP) Pending Dadih Permana noted at a press conference.
The director general remarked that Alsintan was provided in the form of two-wheeled tractors and four-wheeled tractors; water pumps; rice transplanting equipment; choppers; cultivators; excavators; hand sprayers; corn planting tools; and semi-manual corn planting devices.

The agricultural modernization movement has also helped to expand swamps. Efforts to use swamp land with a pattern of land optimization have been initiated since 2016. In 2016, the PSP directorate general carried out optimization activities of 3,999 hectares of swamps, and then in 2017, it covered 3,529 hectares and 16,400 hectares in 2018 (as of Nov 5, 2018).

In 2019, the Ministry of Agriculture, through the Directorate General of PSP, plans to develop a swamp area of 500 thousand hectares spreading across Kalimantan, Sumatra, and Sulawesi. Over the past four years, the PSP directorate general`s policy and program has focused on the development of four agricultural commodity sub-sectors, namely food crops, horticulture, plantations, and livestock. (