Indonesia Micro Irrigation System Market Outlook to 2028

Indonesia Micro Irrigation System Market Overview

Indonesia Micro Irrigation System market was growing at a notable rate. This is reflected in Global Micro Irrigation System which reached a valuation of $11 billion, driven by the increasing demand for efficient water usage in agriculture.

The market is dominated by key players such as Netafim, Jain Irrigation Systems Ltd, Rain Bird Corporation, and Metzer Group. These companies have established a strong presence through extensive product offerings and innovative solutions tailored to the needs of the Indonesian agricultural sector.

In 2023, Rivulis closed a transaction to merge its international irrigation business with Jain Irrigation. The merged entity, with Jain holding a strategic minority stake, creates a global irrigation and climate leader with $750 million in revenues, making it the second largest in the world.

Cities such as Surabaya, Jakarta, and Bandung are dominant in the micro irrigation system market. These cities have seen a surge in the adoption of modern agricultural practices due to their relatively high levels of urbanization and access to infrastructure.

Indonesia Micro Irrigation System Market Segmentation

The Indonesia Micro Irrigation System Market can be segmented based on several factors:

By Type of Irrigation: Indonesia Micro Irrigation System Market is segmented by type into drip irrigation systems, sprinkler irrigation systems, and others. In 2023, drip irrigation systems held a dominant market share due to their precision in water delivery, making them highly efficient for water-scarce regions. The ability to reduce water wastage and improve crop yield has made drip irrigation a preferred choice among farmers.

By Crop Type: Indonesia Micro Irrigation System Market is also segmented by crop type into horticulture, field crops, and orchard crops. In 2023, the horticulture segment dominated the market, driven by the high demand for vegetables and fruits in domestic and export markets. The precise water control offered by micro irrigation systems is crucial for high-value horticultural crops, ensuring consistent quality and yield.

By Region: Indonesia Micro Irrigation System Market is segmented into North, South, East, and West Indonesia. In 2023, East Indonesia led the market share, owing to extensive agricultural activities and supportive government policies. The region's diverse climate and soil conditions make it suitable for a variety of crops, driving the adoption of micro irrigation systems.

Indonesia Micro Irrigation System Market Competitive Landscape

Company Name

Establishment Year

Headquarters

Netafim

1965

Tel Aviv, Israel

Jain Irrigation Systems Ltd

1986

Jalgaon, India

Rain Bird Corporation

1933

California, USA

Metzer Group

1970

Kibbutz Metzer, Israel

Rivulis Irrigation

1966

Kibbutz Gvat, Israel

Metzer & Skipper Joint Venture: In 2024, Skipper Ltd announced a 50-50 joint venture with Metzerplas Co-operative Agricultural Organisation Ltd. This partnership aims to enhance drip irrigation facilities in India and other SAARC nations. The initial investment for the project is set at $8 million, with the production facility to be established at Skipper’s factory in Hyderabad.

Jain Irrigation Systems Ltd.: In 2023, Jain Irrigation Systems Ltd., a key player in the micro irrigation market, announced a strategic plan to raise $200 million to bolster its financial stability and decrease interest expenses. This funding initiative is aimed at enhancing Jain Irrigation's capabilities in the micro irrigation sector, ensuring better resource allocation, and fostering innovation and growth within this crucial market segment.

Indonesia Micro Irrigation System Industry Analysis

Indonesia Micro Irrigation System Market Growth Drivers:

Water Scarcity and Efficient Water Management: Indonesia faces significant water scarcity challenges, particularly in its agricultural sectors. The demand for micro irrigation systems is driven by the need for efficient water management, as these systems use 30-50% less water compared to traditional irrigation methods.

Government Subsidies and Support Programs: The Indonesian government has launched several subsidy programs to encourage the adoption of micro irrigation systems. Integrated Participatory Development and Management of Irrigation Progra was by the Asian Development Bank, aims to improve irrigation system operation, maintenance, and water delivery to farmers in Indonesia across 74 districts and 16 provinces.

Rising Demand for High-Value Crops: The demand for high-value crops, such as fruits and vegetables, has increased both domestically and internationally. Micro irrigation systems are crucial for maintaining the quality and yield of these crops, as they allow precise water and nutrient delivery.

Indonesia Micro Irrigation System Market Challenges:

High Initial Costs: Despite government subsidies, the high initial cost of micro irrigation systems remains a significant barrier. The cost of installing a comprehensive system can range from USD 1,500 to USD 3,000 per hectare, which is substantial for many small-scale farmers. This financial hurdle limits the widespread adoption of these systems.

Limited Awareness and Technical Knowledge: Many farmers lack awareness and technical knowledge about the benefits and operation of micro irrigation systems. This knowledge gap hinders the adoption and optimal use of micro irrigation technologies, affecting their overall effectiveness.

Indonesia Micro Irrigation System Market Government Initiatives

One Million Hectares Program: Initiated in 2023, this Indonesian government program aims to modernize the agricultural sector by improving irrigation infrastructure, particularly through expanding the use of micro-irrigation systems. The initiative targets increasing efficiency and productivity across one million hectares of farmland, contributing to national food security goals​.

Multi-Peril Crop Insurance (MPCI): Starting from 2015, Indonesia has implemented MPCI schemes that protect farmers against a wide range of risks, including floods, droughts, pests, and diseases. These comprehensive insurance policies provide coverage for crop losses, enabling farmers to invest in modern technologies like micro-irrigation systems without the fear of financial setbacks.

Indonesia Micro Irrigation System Future Market Outlook

Looking ahead to 2028, the Indonesia Micro Irrigation System market is expected to continue its upward trajectory, driven by ongoing government support and technological advancements. The integration of Io T and AI technologies in irrigation systems will further enhance efficiency and productivity, making micro irrigation an integral part of Indonesia's agricultural landscape.

Future Trends

Increased Adoption of Smart Irrigation Systems: The adoption of smart irrigation systems is expected to grow significantly over the next five years. By 2028, it is anticipated that a substantial portion of new installations will incorporate Io T and AI technologies, allowing for real-time monitoring and control of water usage.

Expansion of Micro Irrigation to New Crops and Regions: As the benefits of micro irrigation become more widely recognized, the technology is expected to expand beyond traditional horticultural crops to include field and orchard crops. Parts of North and West Indonesia will see increased adoption rates due to government incentives and educational programs.
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