A thesis submitted in partial fulfillment of the requirements for the degree of Master of Science. School of Environment, Resources and Development

Thesis (M.Sc.) - Asian Institute of Technology, 1997

Rural industries in Indonesia have been using traditional technology which yield lower productivity and poor quality of products. Having realized the need to upgrade the technology in rural industry, the government of Indonesia launched the small scale tool and rural technology package program. This program was implemented in Southeast Sulawesi between 1991-1993. The objectives on this study was to evaluate the effect of technology introduced by program implementor in improving the standard of living of people involved in the project. This study focused of three branches of industries ; sago, palm sugar and coconut oil processing, and evaluated some aspects such as, income, productivity, labor absorption, quality improvement, effect on environment and technology adaptability based on appropriateness criteria. In certain aspects there were differences in the three branches but in others the situation was similar. The research result revealed that the project had limited success. Product quality improvement, increased production, involved more labor in the industry, improve technology skill and knowledge, increasing the number of people using similar technology introduced by the program are some of benefits derived. On the other hand, some industries failed to achieve full capacity of production due to limitation of market , scarcity of raw materials, lack of capital and skill in organizing machines, concentrating to much on production ignoring marketing, not maintaining proper accounts, too much domination by the head and lack of participation by members are the main weaknesses of the target group. No coordination among institutions involved in the project led to deliver inappropriate technology, lack of supporting organization and human resources development for the target group. If the existing weaknesses can be rectified, the technology can be replicable.