Updated Aug 25, 2022 21:53

Market for Agricultural, Construction and Industrial Machinery Tire in Indonesia

Market Overview
After three years of growth, the Indonesian market for tyres for agriculture, forestry, construction, industry and other off the road vehicles decreased by -% to $ in . Over the period under review, consumption, however, continues to indicate a strong increase. Consumption of peaked at $ in , and then fell in the following year.

In value terms, production of tyres for agriculture, forestry, construction, industry and other off the road vehicles reduced slightly to $ in estimated in export price. In general, production posted a significant expansion. The most prominent rate of growth was recorded in 2012 when the production volume increased by %. Over the period under review, production of tyres for agriculture, forestry, construction, industry and other off road vehicles attained the peak level at $ in , and then shrank in the following year.


Consumption
In , consumption of tyres for agriculture, forestry, construction, industry and other off the road vehicles was finally on the rise to reach units for the first time since 2018, thus ending a three-year declining trend. Overall, consumption enjoyed a strong expansion. Consumption of peaked at units in 2018; however, from 2019 to , consumption stood at a somewhat lower figure.

The size of the market for tyres for agriculture, forestry, construction, industry and other off the road vehicles in Indonesia expanded markedly to $ in , picking up by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption continues to indicate resilient growth. Over the period under review, the market hit record highs in and is likely to see gradual growth in years to come.


Market Forecast
Driven by increasing demand for agricultural, construction and industrial machinery tire in Indonesia, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to units by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Affected by an intensive growth in domestic production, which will gradually displace imported products from the market, the share of imports decreased from % in 2007 to % in . Indonesia domestic supply is expected to continue its growth. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
Indonesia remains a net importer of agricultural, construction and industrial machinery tire; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of units, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.