Indonesia ranks as one of the top countries in terms of agricultural land area (ranked 5th according to FAO data) making it a popular mechanisation market in Asia. However, Indonesia has been slow in adopting mechanisation. A lack of jointly-harvested land, low yield prices and poor service incentives has led to the underutilisation of 17,858 mechanised machines from the government.
In response to the rising cost of labour, which is a major cost factor due to a declining labour force and wage increases, mechanisation leading to more efficient agricultural processes and reduced production costs, plays a vital role in raising productivity in East and Central Java provinces as the top major rice producers. Mechanisation combinations in one hectare of harvested land can reduce labour by up to 97% and reduce costs by 33%.
PRISMA and its partners are striving to improve farmers’ access to small and large machine services through an affordable rental system. Farmers are also supported to develop improved market strategies and segmentation, distribution networks, and after-sales services leading to increased service areas and overall sales.