| Indonesian Forestry Optimization Model (INDO FOM) is an economic model for evaluating development alternatives for forest-based economies in Indonesia. It is a linear programming model designed to identify the most efficient pattern of supplying forest products to domestic and export markets, including optimal locations for logging, harvesting and industry; efficient transport links; and industry/port capacity requirements. The model has goal and separable programming features. Its formulation is based on a Forestry Sector Planning Model for Indonesia developed by Dr. Joseph Buongiorno.;The purposes of this study are: (1) to review and consider optimization models as methods for forest based economic planning, and (2) to exercise and to test the model to know its potential role and applications as well as its limitations. The INDO FOM was applied in the East Kalimantan forest-based economic region to a selected ten HPH-(Hak Pengusahaan Hutan, Forestry Licensed Concessionaire) industrial companies that meet the Indonesian Forestry Agreement criteria. There were nine sawmill, seven plywood and veneer mill, one chip-board and one pulp-paper operations; three ports; two local demand regions, six interinsular demand points and sixteen foreign demand points; and eight transportation links. Five development alternatives have been analyzed.;The results of the case study have assisted in giving general suggestions or guidelines to the East Kalimantan regional economic development planners, including (i) resource development, (ii) industry development, (iii) port development, (iv) market development and (v) transportation linked development.;INDO FOM has application to forestry in Indonesia: (1) as a training tool, (2) to provide quantitative information in identifying areas of research and development, and (3) as a computer-based economic planning tool. Aspects of INDO FOM that need to be revised in the future, in order to incorporate important related concerns are: (a) forest plantations, (b) port agglomeration economies, and (c) environmental goals. |
