- Ministry of Industry urges collaboration between local manufacturers and R&D.
- Incentives are planned for firms driving innovation and productivity.
- Agri-machinery exports hit $90M in 2024 from 67 manufacturers.
The Ministry of Industry highlighted the importance of enhanced cooperation between domestic agricultural equipment producers and research organizations to support Indonesia in creating more efficient and innovative products.
Setia Darta, Director General of the Metal, Machinery, Transportation Equipment, and Electronics Industry, mentioned that improving local industries' capability to create innovations will aid the nation’s agricultural mechanization initiatives.
“To support agricultural mechanization—which is a backbone of national food security—we are committed to boosting the growth of local agricultural machinery manufacturers,” he said.
For this purpose, the ministry has developed a long-term plan aimed at enhancing the productivity, innovation, competitiveness, and sustainability of local manufacturers.
This involves incorporating national industrial development and the Making Indonesia 4.0 policies to facilitate change in the manufacturing industry.
Incentives will likewise be given to manufacturers that uphold active research and development teams and consistently generate new innovations.
Also Read: Kazakhstan, China Launch $66.4B Industrial Projects Deal
“With strong collaboration among stakeholders and supportive government policies, we believe Indonesia’s agricultural machinery sector can grow sustainably and significantly enhance national agricultural productivity,” he said.
At present, Indonesia features 67 manufacturers of agricultural machinery with a workforce of 5,629 employees.
These firms manufacture an assortment of machinery including two-wheeled tractors, soil cultivation equipment, manual sprayers, and rotavators.
Darta mentioned that certain products are currently being sold in global markets, achieving export values of USD 90 million in 2024.