TYM has signed a large-scale tractor supply contract with Indonesia, accelerating its expansion into the Southeast Asian market.

Global agricultural machinery specialist TYM (Co-CEOs: Hiyong Kim and Dohoon Kim / 002900) announced on the 21st that it has signed a five-year tractor supply contract worth a total of KRW 35 billion with a leading agricultural machinery company in Indonesia.

This contract is structured as a long-term project, beginning with an initial delivery of 100 units in early 2025 and gradually increasing the supply volume each year. Through this agreement, TYM expects to secure a stable revenue base and achieve substantial export growth.

Notably, this contract goes beyond simple product supply; it is anticipated to serve as a pivotal turning point for TYM, enabling the company to significantly expand its market presence in emerging markets through long-term partnerships.
As of 2022, Indonesia’s agricultural machinery market has been rapidly growing, estimated at around USD 700 million, fueled by the government’s large-scale farmland expansion initiatives. This has led to a surge in tractor demand, positioning Indonesia as a key market in Southeast Asia. TYM proactively developed and launched locally customized products to meet market needs, leading to the successful conclusion of this contract. The KRW 35 billion supply deal serves as a crucial foundation for penetrating the local market and demonstrates the potential for further expansion.

Building on its successful experience supplying tractors to the Philippine government, TYM has diversified its export markets across the Asia-Pacific (APAC) region. The entry into Indonesia—home to the world’s fourth-largest population and the largest agricultural market in Southeast Asia—marks a strategic milestone. The locally customized biodiesel tractor, developed since 2021 and launched in 2024, was a key competitive advantage in securing this contract.

TYM’s Indonesian partner is a prominent agricultural machinery manufacturer with over 50 years of expertise. The partnership was finalized after rigorous evaluation of product quality, service capabilities, and compliance with international standards. Together, TYM and its partner will establish a comprehensive parts and service network throughout Indonesia, aiming to accelerate market share growth. Additionally, TYM plans to collaborate with local government agencies to drive the development of innovative, market-specific products and cultivate technical talent in the region.

Kim Ho-Kyum, Head of TYM Global Business Division, stated, “As a result of our consistent market diversification strategy, we have achieved a meaningful outcome in Indonesia, the largest market in Southeast Asia. We are committed to not only delivering superior product quality but also enhancing customer experience through robust service and parts supply, with the goal of establishing TYM as the leading brand in the local market.”