Impact of the Integrated Pest Management Program on the Indonesian Economy

The excessive use of pesticides in Indonesia during the 1970s and 1980s caused serious environmental problems, such as acute and chronic human pesticide poisoning, animal poisoning, the contamination of agricultural products, the destruction of both beneficial natural parasites and pest predators, and pesticide resistance in pests. To overcome these environmental problems, the Indonesian government implemented an integrated pest management (IPM) program from 1991 to 1999. During that time, the program was able to help farmers reduce the use of pesticides by approximately 56% and increase yields by approximately 10%. However, economic literature that analyses the impact of the IPM program on household incomes and national economic performance is very limited. The general objective of this research is to analyse the impact of the IPM program in food crops on the Indonesian economy and household incomes for different socioeconomic groups.computable general equilibrium model, agricultural economics,environmental economics