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Indonesia Agrochemicals Market Size (2024 - 2029)

The Indonesian agrochemicals market is experiencing growth driven by the need to enhance land productivity and meet increasing food demand. The government's policies aimed at improving food security and agricultural sustainability are fostering the use of agrochemicals, particularly fertilizers, to boost agricultural yields. This is crucial as the country's agriculture, predominantly small-scale, requires significant productivity improvements. The market size is influenced by the extensive use of agrochemicals in grain and cereal farming, with rice and maize being key crops. The collaboration between financial institutions and agrochemical companies further supports farmers in adopting advanced practices to ensure sustainable agricultural growth.

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Market Size of Indonesia Agrochemicals Industry

Indonesia Agrochemical Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 609.70 Million
Market Size (2029) USD 718.20 Million
CAGR (2024 - 2029) 3.30 %
Market Concentration High

Major Players

Indonesia Agrochemicals Market Major Players

*Disclaimer: Major Players sorted in no particular order

Indonesia Agrochemical Market Analysis

The Indonesia Agrochemicals Market size is estimated at USD 609.70 million in 2024, and is expected to reach USD 718.20 million by 2029, growing at a CAGR of 3.30% during the forecast period (2024-2029).

  • Indonesia's agrochemical market plays a pivotal role in the nation's expansive agricultural landscape, which includes the cultivation of staples like rice, palm oil, rubber, cocoa, coffee, and tea. As a leading global agricultural producer, Indonesia's demand for agrochemicals encompassing fertilizers, pesticides, herbicides, and fungicides continues to surge, bolstering both crop productivity and food security. With an ever-growing food demand, the country grapples with the challenge of enhancing land productivity. A study by the Center for Indonesian Policy Study (CIPS) projects per capita rice consumption to rise from 97.6 kg in 2021 to 99.5 kg by 2045, suggesting a population growth of 300 million by that year. To meet these demands and bolster food self-sufficiency, the country is increasingly relying on agrochemicals for crop protection.
  • Moreover, agriculture stands as a cornerstone of Indonesia's economy, being the second-largest sector and a livelihood for millions of farmers. Recognizing the significance of fertilizers in boosting productivity, the government has been proactive in offering subsidies. For instance, in 2024, the Indonesian government hiked its fertilizer subsidy by a substantial 70% year-on-year, elevating the budget from Rp 26.68 trillion (USD 0.0017 trillion) in 2023 to Rp 40.68 trillion (USD 0.0026 trillion).
  • In Indonesia, agrochemicals find their primary application in grain and cereal farming, which is ramping up production to cater to rising demands. According to FAOSTAT, Indonesia's cereal production jumped from 71.4 million metric tons in 2021 to 78.3 million metric tons in 2022. Such increases are largely attributed to intensive cultivation practices, heavily reliant on agrochemicals. With rice and maize being the predominant cereals, both are notably susceptible to pests and diseases.

Indonesia Agrochemical Industry Segmentation

Agrochemicals are commercially manufactured chemicals that enhance crop performance and prevent crop destruction by pests, diseases, and weeds, thereby improving crop yield and quality. The Indonesia Agrochemicals Market is segmented by Type (Fertilizers, Pesticides, Adjuvants, and Plant Growth Regulators) and Application (Cereals, Oilseed, Fruits and Vegetables, and Other Crops). The report offers market sizing and forecasts regarding value (USD) for all the above segments.

Type
Fertilizers
Pesticides
Adjuvants
Plant Growth Regulators
Application
Cereals
Oilseeds
Fruits and Vegetables
Other Crops
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Indonesia Agrochemicals Market Size Summary

The Indonesian agrochemical market is experiencing a steady growth trajectory, driven by the need to enhance agricultural productivity and ensure food security. As the country faces challenges such as limited land productivity and a growing population, the government has implemented policies to boost agribusiness sustainability and self-sufficiency in food production. This has led to an increased reliance on agrochemicals, particularly fertilizers, to improve crop yields. The expansion of fertilizer production capacities, especially for urea-based fertilizers, underscores the commitment to supporting the agricultural sector. Collaborations, such as that between PT Bank Rakyat Indonesia and PT Syngenta Indonesia, aim to provide financial and technological support to farmers, enhancing their productivity and profitability through advanced agricultural practices.

Agrochemicals play a crucial role in the cultivation of grains and cereals, which are staple foods in Indonesia. The use of crop protection chemicals is essential to combat pest infestations and adverse weather conditions that threaten crop yields. The government's efforts to mechanize agriculture, invest in infrastructure, and expand farming areas have further increased the demand for agrochemicals. Major players in the market, including BASF, Yara International, Syngenta AG, Bayer Crop Science, and Dow Agrosciences, are actively engaging in strategies such as mergers, acquisitions, and product launches to strengthen their market presence. Innovations like the Nelvium pest control solution and mobile applications for agronomic support highlight the ongoing advancements in agrochemical technologies aimed at boosting agricultural output in Indonesia.

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Indonesia Agrochemicals Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Growth in the Agricultural Sector

      2. 1.2.2 Rising Food Demand and Arable Land

      3. 1.2.3 Rising Government Subsidies

    3. 1.3 Market Restraints

      1. 1.3.1 Rising Concern Among Farmers and Consumers on The Impact of Chemical Pesticide Usage

      2. 1.3.2 Adaptation of Genetically Modified Crops

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Buyers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products and Services

      5. 1.4.5 Degree of Competition

  2. 2. MARKET SEGMENTATION

    1. 2.1 Type

      1. 2.1.1 Fertilizers

      2. 2.1.2 Pesticides

      3. 2.1.3 Adjuvants

      4. 2.1.4 Plant Growth Regulators

    2. 2.2 Application

      1. 2.2.1 Cereals

      2. 2.2.2 Oilseeds

      3. 2.2.3 Fruits and Vegetables

      4. 2.2.4 Other Crops

Indonesia Agrochemicals Market Size FAQs

The Indonesia Agrochemicals Market size is expected to reach USD 609.70 million in 2024 and grow at a CAGR of 3.30% to reach USD 718.20 million by 2029.

In 2024, the Indonesia Agrochemicals Market size is expected to reach USD 609.70 million.

Indonesia Agrochemicals Market Report Snapshots

Indonesia Agrochemical Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)