The development objective of the Sustainable Management of Agricultural Research and Technology Dissemination Project is to improve the institutional capacity and performance of the Indonesian Agency for Agricultural Research and Development (IAARD) to develop and disseminate relevant and demand-driven innovative technologies, meeting the needs of producers and of the agri-food system. There are four components to the project. The first component of the project is human resource development and management.

Labor saving innovations are essential to increase agricultural productivity, but they might also increase inequality through displacing labor. Empirical evidence on such labor displacements is limited. This study uses representative data at local and national scales to analyze labor market effects of the expansion of oil palm among smallholder farmers in Indonesia. Oil palm is labor-saving in the sense that it requires much less labor per unit of land than alternative crops.

Oil palm (Elaeis guineensis) has become the most important oil crop throughout the world. The growing palm oil production was mainly based on the expansion of cultivated area into forest areas, causing serious environmental and social concerns. Increasing yields on existing plantations is a potential pathway to reduce the undesired ecological impacts of oil palm agriculture while enhancing its social benefits. Although oil palm production is still dominated by large private estates, smallholder farmers are increasingly engaging in its cultivation.