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June 21, 2012

Strengthening Agricultural Machinery Business in Indonesia
~ Founding a sales company in Indonesia ~

Kubota Corporation (Headquarters: Osaka, Japan; Chairman and President: Yasuo Masumoto, hereinafter "KUBOTA") has announced it will establish P.T. Kubota Machinery Indonesia (tentative name) (hereinafter "KMI"), a company to sell agricultural machinery, in Republic of Indonesia in September, 2012. Looking forward, the market for agricultural machinery in Indonesia is expected to expand. With an aim to further grow its agricultural business in Asia, KUBOTA will start full-scale sales of tractors, combine harvesters, and rice transplanters, which are major kinds of agricultural machinery for paddy fields, in Indonesia.

  1. Profile of new company
    Company name P.T. Kubota Machinery Indonesia (tentative name)
    Month of establishment September, 2012 (planned)
    Location Jakarta, Republic of Indonesia
    Capital 50 billion rupiahs
    (approximately 430 million yen at the exchange rate of 1 yen to 115 rupiahs)
    Investment form Kubota 100%
    Business Sale of tractors, combine harvesters, and rice planters
    Number of employees Approximately 30 (as of 2012)
  2. Background to and aim of establishing new company

    • Being a major agricultural country, Indonesia is the third-largest rice producer, and the largest producer of palms. KUBOTA has provided tractors for plantations through dealers for 40 years. It also established P.T. Kubota Indonesia (PTKI), a company that manufactures horizontal diesel engines, and supplied them to local manufacturers of power tillers.
    • The farming population in Indonesia is likely to decrease along with the country's further economic development. Against this background, mechanization of agriculture is expected to develop, increasing the demand for tractors, combine harvesters, and rice transplanters, which are major kinds of agricultural machinery for paddy fields.
    • Preparing to expand the market of agricultural machinery in the future, KUBOTA will establish a sales company and promote mechanization of agriculture and contribute to the development of agriculture in Indonesia.
  3. Plans for the future

    • Targeting sales of approximately 10 billion yen in 2017.
    • Planning to organize a dealer network of 50 shops nationwide by 2017.

    Headquarters

    Southeast Asia

    Agricultural machinery to be sold in Indonesia

    Tractors for paddy fields   Tractors for plantations
    Combine harvesters   Rice transplanters
Please direct inquiries about this press release to:
Public Relations Office, Corporate Communication Dept.,
Kubota Corporation
TEL: +81-(0)6-6648-2389