Updated Nov 15, 2022 01:40

Tractor Market in Indonesia

Market Overview
Please note: Annual data for 2022 are preliminary and subject to revision
In , the Indonesian tractor market was finally on the rise to reach $ for the first time since 2018, thus ending a two-year declining trend. Overall, consumption, however, saw resilient growth. Tractor consumption peaked at $ in 2018; however, from 2019 to , consumption remained at a lower figure.

In value terms, tractor production amounted to $ in estimated in export price. In general, production, however, showed a buoyant expansion. The pace of growth was the most pronounced in 2008 when the production volume increased by %. Over the period under review, production reached the peak level at $ in 2018; however, from 2019 to , production failed to regain momentum.


Consumption
Please note: Annual data for 2022 are preliminary and subject to revision
In , the amount of tractors consumed in Indonesia stood at units, increasing by % against the previous year. Over the period under review, consumption saw a resilient increase. Over the period under review, consumption reached the peak volume at units in ; however, from to , consumption remained at a lower figure.

The value of the tractor market in Indonesia rose significantly to $ in , growing 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). Overall, consumption continues to indicate a resilient expansion. Tractor consumption peaked at $ in 2018; however, from 2019 to , consumption failed to regain momentum.


Consumption by Type
Please note: Annual data for 2022 are preliminary and subject to revision
Agricultural and forestry tractors ( units), pedestrian-controlled tractors ( units) and road tractors for semi-trailers ( units) were the main products of tractor consumption in Indonesia, with a combined % share of the total volume. These products were followed by crawler tractors, which accounted for a further less than %.

From 2007 to , the most notable rate of growth in terms of consumption, amongst the main consumed products, was attained by crawler tractors (with a CAGR of +%), while consumption for the other products experienced more modest paces of growth.

In value terms, agricultural and forestry tractors ($) led the market, alone. The second position in the ranking was taken by pedestrian-controlled tractors ($). It was followed by road tractors for semi-trailers.

From 2007 to , the average annual rate of growth in terms of the value of agricultural and forestry tractors markets stood at +%. With regard to the other consumed products, the following average annual rates of growth were recorded: pedestrian-controlled tractors (+% per year) and road tractors for semi-trailers (+% per year).


Market Forecast
Please note: Annual data for 2022 are preliminary and subject to revision
Driven by increasing demand for tractor 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
Please note: Annual data for 2022 are preliminary and subject to revision
Over the period under review, imports of tractor in Indonesia were negligibly small compared to the production volumes. Therefore, the share of imports in the total market was practically nonexistent, both in volume and in value terms. This situation has remained constant over the period under review, which means that domestic producers entirely meet the domestic demand for tractor. 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
Please note: Annual data for 2022 are preliminary and subject to revision
Indonesia remains a net exporter of tractor; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of units, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.