Indonesia Agricultural Technology
Indonesia’s agricultural sector is digitizing. Initiatives like the “Indonesia Maps of Agricultural Commodities Export (IMACE) application, an agricultural machinery purchase program (Taxi Alsintan) and a millennial farmers support program (Petani Milenial) are examples of the Ministry of Agriculture’s commitment to modernize Indonesian agriculture. Indonesia launched a command center mega-project, “Indonesia Agriculture War Room”, to speed coordinated implementation of this commitment. The use of advanced technologies within agriculture is favored to address challenges such as labor shortages due to aging populations and increased urbanization, as well as to improve yield performance and production efficiency.
Internet of Things (IoT)and the Adoption of Agri-Tech
The use of agricultural tech applications is on the rise, particularly for functions like irrigation and temperature control. This is especially beneficial for cultivating sensitive fruits and other produce, as well as for managing livestock such as chickens.
The use of electricity in Indonesian farming is expanding, driven by government initiatives and a growing awareness of its benefits. PT PLN (Persero), the state-owned electricity company, plays a crucial role through its “Electrifying Agriculture” program. This program offers incentives and facilitates grid extension to rural areas, encouraging farmers to transition from diesel-powered machinery to electric alternatives. This shift not only improves farm efficiency, but also contributes to a cleaner environment by reducing greenhouse gas emissions and air pollution associated with diesel fuel.
While electricity is gaining traction, solar energy is also emerging as a promising option for Indonesian agriculture. Although its current use remains limited, there’s growing interest among farmers and distributors alike. Distributors are actively exploring solar-powered technologies from leading manufacturers, including those in the United States. Solar power offers a sustainable and cost-effective solution for powering irrigation systems, greenhouses, and other farm equipment, particularly in remote areas where grid access is limited. The potential for solar energy in Indonesian agriculture is significant, and its utilization is expected to increase as technology becomes more affordable and readily available.
Opportunity
High-quality American agricultural technologies retain a market edge—even with premium prices. The rise of technology and digitalization is evident across all agricultural sectors, from crop farming and livestock management to aquaculture. This trend is attracting more young people to the industry, and the use of the Internet of Things or IoT is undeniably on the rise.
There are also opportunities in agricultural drones. Many Indonesian farmers farm small lots, where drones can be useful helping to reduce water consumption, pesticide use, and reduce labor. Drone usage is growing for multiple uses, from planting and spraying to monitoring. There are two types of farmers when it comes to drone technology, those who rent and those who own. U.S. drone solution providers should consider both. Big players prefer purchasing their own drones. However, most farmers rent this kind of technology from associations and from distributors.
Drone spraying formulation research and development is happening globally, including growing local manufacturing in Indonesia. However, problems with sprayers, droplet sizes, and efficacy still need to be addressed, which is why drone formulation remains a specific niche opportunity.
For more information or to learn about the future Agriculture technologies in Indonesia, please contact:
Trianie Ananda
Commercial Specialist for Agribusiness
Trianie.Ananda@trade.gov