INDONESIA AGROCHEMICALS MARKET

Indonesia agrochemicals market size is forecast to grow at a 3.8% CAGR between 2025 and 2032 driven by the increasing need for agricultural commodities coupled with government supports in the sector.

Major Indonesia Agrochemicals Market Drivers and Emerging Trends

The market is experiencing significant growth owing to the increasing need for food driven by the growing population. The CIPS predicts that in 2045 average rice consumption per individual will climb to more than 99 kilograms. Farmers are thus under pressure to optimize crop yields to meet the growing demand. The chemicals are important for boosting productivity by improving crop quality. These are also recognized for their simple application in targeting specific organisms. The chemicals can be integrated with modern farming methods and contribute to sustainable agriculture practices.

The government has introduced supportive policies to boost market growth considering agriculture is an important component in the economy. These policies focus on improving food security and ensuring environmental protection. The government also offers financial support and subsidies to farmers for using agrochemical products which contributes to market growth. Its commitment to research has also fostered the sustainable products development that meet international standards.

Another factor driving Indonesia agrochemical market size growth is the innovation in technology. Innovative and effective agrochemical products have provided farmers with better approaches for crop protection and pest control. Precision agriculture including sensors and drones have also boosted efficiency which results in greater crop yields. Integrating AI and data analytics has further changed the industry. AI tools analyze extensive data to offer insights into crop health and pest problems which empowers farmers to make informed decisions for improved yields. This integration of agriculture and technology is ushering the market into a brand new age marked by innovation.

The environmental effects associated with agrochemicals use represent a major market challenge. Excessive fertilizers or pesticides use can cause soil pollution along with damage to beneficial organisms. The incorrect usage can also present health risks with farmers prone to exposure if proper safety precautions are not followed. It emphasizes the urgent need for safer substitutes for conventional agrochemicals. Educating farmers on careful and responsible application is also essential including the proper application techniques.

Based on type, fertilizers represent a key segment in the market. Indonesia faces a challenge with the significant slowdown in productivity gains for food crops with most farmers working on plots smaller than half a hectare. The agriculture industry is also confronted with several threats including various plant diseases which cause reduced crop yields. The government is aiming to raise production levels by promoting the more effective agrochemicals use like fertilizers. The crop protection chemicals segment is also expanding rapidly because it addresses major issues in the agricultural sector like insect pests. In response to these challenges and to support crop production many farmers are relying significantly on pesticide products to control crop damage.

Based on application the cereal & grain segment leads the market. As a staple food cereals are a primary energy and fiber source while also providing essential micronutrients like zinc. To satisfy the increasing consumer need for rice and support food self sufficiency the agricultural approach has been adjusted to plant three times a year with complete reliance on plant protection chemicals. The brown planthopper is a significant rice pest and virus carrier in Javanese rice fields which drives the increased application for these chemicals. The agricultural industry aims to bolster productivity along with food security by raising cereal production. It can be accomplished by utilizing agrochemicals which protect plants from pests thus improving yields.

Top Market Players

Several leading companies in the market include Yara International, BASF, Corteva Agriscience among others. These companies offer various products and have robust distribution channels which allows them to meet the varied requirements of farmers throughout the country. Major companies are also continually focused on innovating and developing agrochemicals solutions to address the changing needs in the industry.

Key Developments

• • In 2024, the agrochemical giant UPL Ltd completed its acquisition of the final 20% share in PT Excel Meg Indo which is an Indonesian firm in the agrochemical sector. Operating from Jakarta, PT Excel is engaged in the import and distribution of agrochemicals across Indonesia.
  • In 2023, BASF introduced multiple pesticide products which emphasizes innovative agricultural protection solutions in Indonesia. Among the key products launched was Seltima Plus which is a rice fungicide with integrated resistance management aimed at promoting higher yield and better seed quality.

Segments covered in the Report:

The Indonesia Agrochemicals Market has been segmented on the basis of Type and Application. Based on Type, the market is segmented into Fertilizers, Crop Protection Chemicals, Plant Growth Regulators, and Others. The Fertilizers segment is further Segmented into Nitrogenous, Phosphatic, Potassic, Secondary Fertilizers, and Others. The Crop Protection Chemicals segment is further Segmented into Herbicides, Insecticides, Fungicides, and Others. Based on Application, the market is segmented into Cereal & Grains, Oilseeds & Pulses, Fruits & Vegetables, and Others.

Market Segmentation

Indonesia Agrochemicals Market by Type

• • Fertilizers
    • Nitrogenous
    • Phosphatic
    • Potassic
    • Secondary Fertilizers
    • Others
  • Crop Protection Chemicals
    • Herbicides
    • Insecticides
    • Fungicides
    • Others
  • Plant Growth Regulators
  • Others

Indonesia Agrochemicals Market by Application

• • Cereal & Grains
  • Oilseeds & Pulses
  • Fruits & Vegetables
  • Others

Indonesia Agrochemicals Market Leading players

• • Yara International
  • BASF
  • Corteva Agriscience