This study aims to estimate the demand for insecticides in soybean farms in Java, Indonesia, and to analyze the impact of the integrated pest management (IPM) technology on insecticide use. It uses aggregate cross-section time series data during the period 1990-1998, when the IPM technology was disseminated in Indonesia. By using recursive and simultaneous equation models, it estimates the impact of the IPM technology on the demand for insecticides. The study finds that the IPM technology has reduced significantly the use of insecticides in soybean farming.