Agricultural Equipment Business Start Risen

Agricultural Equipment Business Start Risen – Agricultural equipment industry began to rise after years of slumped since the onslaught of imported products from various countries. This stretching appears as evidence of the effectiveness of the implementation of the standard obligations of the National Indonesia (SNI) components.

Kartono W, Vice-Chairman of the Association of Equipment and Agricultural Machinery Indonesia (Alsintani), said production of agricultural tools to the first half of 2011 has met about 60% of the market needs. This is different from years ago that is still less than 50%. “There has been a good development for the agricultural equipment business,” he said on Monday (22 / 8).

Based on data from the Ministry of Industry (Ministry of Industry) tractor engine needs only reach 200,000 units per year. From these figures the domestic industry to control sales of 140,000 units. “This could be due to the strict ISO standards specify the products of government,” he said.

Since 2010, the Government through the National Standardization Agency (BSN) does require the engine components must meet national standards or have standards. Thus, the importers can not arbitrarily sell imported products. “So there is a good influence,” he said.

In addition, the obligations of the projects the government to impose domestic content level (TKDN) more than
50% also encourage the use of locally-made farming tool. Moreover, still according Kartono, many farmers choose locally made agricultural products because there is a repair service when damaged.

One company that enjoys such increases are PT Kubota Indonesia, which has been producing machines for agriculture. Director of PT Kubota Indonesia, Robinson Winward predict market demand for agricultural diesel engines will rise by 10-15% per year. The increase in demand among others, to open agricultural lands outside Java.

Kubota Indonesia, which has been producing diesel engines for tractors, plans to raise capacity of its plant in Central Java Ungaran, from 50,000 units, rising to 100,000 units per year by 2013. Kubota set aside for
Rp 12.5 billion for capital capacity of this plant. “It’s gradual,” he said.

In 2010 Kubota diesel engines specially managed to sell the tractor as much as 35,000 units or equivalent or equivalent to the turnover of Rp 250 billion. With market growth of 10% – 15% until 2013 he was optimistic that sales could reach 75,000 units per year.

Kubota hope that besides the domestic market, the products can compete to other countries for export markets. Kubota is currently exporting 16% of total sales to countries like Japan, Philippines, Sri Lanka, and Australia. “In the future share of exports going to keep us Raise,” he added.

Although the market in the country increased dalama, PT Indonesia Tri Ratna Diesel, diesel engine manufacturer in Gresik to raise exports to 30%. Currently Tri Ratna Diesel production capacity reaches 20,000 units per year, with exports amounting to 20%. “We are looking for new markets,” said Robert Sumar, Director Tri Ratna Diesel.

Teddy Caster Sianturi, Director of Industrial Machinery and Equipment Agricultural Machinery Industry Ministry said, although the local industry holds the market, the current utilization of agricultural machinery plant only as much as 60-70%. The producers have to compete with the price of imported products. “The product price is very cheap imports,” he said.

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