Introduction
A technical research team has been established to evaluate the economics of different levels of branch road (or skid trail) density in forests within different regions within Indonesia. The regions which will be examined are:
1.
Sumatera and Sulawesi;
2.
Kalimantan Barat;
3.
Kalimantan Tengah;
4.
Kalimantan Timur;
5.
Maluku; and
6.
Irian Jaya
You have been picked as a member of this team and have been asked to prepare a short presentation on the optimal level of roading density in one of the above regions. The following pages contain all of the information which will be required to investigate each of these regions. The following sheets (BACKGROUND DATA) contain information about capital and operating costs for typical HPHs in each of the regions, current roading costs and density and production levels and prices.
Other members of the team will be assisting you with this task, so you do not have to calculate the profitability of HPHs in all the regions. Your contribution to the team's work will be to complete the following tasks:
1.
read the background data and enter the necessary changes into the Forest Concession Model for your chosen region(s).
2.
calculate the IRR of a typical HPH in this region and examine the effect of different skid trail densities on IRR (by altering the planned level of branch road density on page 8 of the model); and
3.
prepare a short presentation of your results showing the profitability of HPHs in your region and explaining the optimal level of skid trail density.
BACKGROUND DATA (SHEET 1 OF 7)
Concession details
|
Region |
Sumatera and Sulawesi |
Kalimantan Barat |
Kalimantan Tengah |
Kalimantan Timur |
Maluku |
Irian Jaya |
|
Concession size |
130,000 |
180,000 |
200,000 |
200,000 |
200,000 |
200,000 |
|
Time to 2nd cycle |
15 |
15 |
15 |
15 |
25 |
25 |
|
Total area - virgin |
45,000 |
60,000 |
75,000 |
75,000 |
125,000 |
125,000 |
|
Total area - 2nd |
60,000 |
80,000 |
100,000 |
100,000 |
50,000 |
50,000 |
|
First year of investment |
1997 |
1997 |
1997 |
1997 |
1997 |
1997 |
|
Yield - virgin |
35 |
40 |
50 |
50 |
50 |
30 |
|
Yield - 2nd |
20 |
20 |
35 |
35 |
35 |
15 |
BACKGROUND DATA (SHEET 2 OF 7)
Planning and surveying costs
|
Region |
Sumatera and Sulawesi |
Kalimantan Barat |
Kalimantan Tengah |
Kalimantan Timur |
Maluku |
Irian Jaya |
|
20 year plan |
2.5 |
2.5 |
2.5 |
2.5 |
0 |
0 |
|
Village dev diagnostic survey |
4 |
3 |
1.5 |
1.5 |
1.5 |
2 |
|
EIA (AMDAL) |
0.75 |
0.75 |
0.75 |
0.75 |
0 |
0 |
|
Aerial photography |
0.9 |
0.9 |
0.9 |
0.9 |
0 |
0 |
|
Length of boundary |
30 |
40 |
50 |
50 |
0 |
0 |
BACKGROUND DATA (SHEET 3 OF 7)
Camp investment (US$ 000)
|
Region |
Sumatera and Sulawesi |
Kalimantan Barat |
Kalimantan Tengah |
Kalimantan Timur |
Maluku |
Irian Jaya |
|
Buildings |
450 (new) |
500 (new) |
530 (new) |
530 (new) |
350 (existing) 10 yrs |
350 (existing) 10 yrs |
|
Electricity |
8 (existing) |
8 (existing) |
8 (existing) |
8 (existing) |
4 (existing) |
4 (existing) |
|
Gen set |
8 (existing) |
8 (existing) |
8 (existing) |
8 (existing) |
4 (existing) |
4 (existing) |
|
Water supply |
8 (existing) |
8 (existing) |
8 (existing) |
8 (existing) |
4 (existing) |
4 (existing) |
|
Comms equipment |
16 (existing) |
16 (existing) |
16 (existing) |
16 (existing) |
8 (existing) |
8 (existing) |
|
Workshop equipment |
84 (existing) |
84 (existing) |
84 (existing) |
84 (existing) |
42 (existing) |
42 (existing) |
|
Other equipment |
34 (existing) |
34 (existing) |
34 (existing) |
34 (existing) |
17 (existing) |
17 (existing) |
BACKGROUND DATA (SHEET 4 OF 7)
Replacement capital requirements (US$ 000)
|
Region |
Sumatera and Sulawesi |
Kalimantan Barat |
Kalimantan Tengah |
Kalimantan Timur |
Maluku |
Irian Jaya |
|
Renovate camp |
- |
- |
- |
- |
700 in yr 11 |
700 in yr 11 |
|
Utilities |
39 in yr 11 |
39 in yr 11 |
39 in yr 11 |
39 in yr 11 |
39 in yr 6 |
39 in yr 6 |
|
Comms equipment |
25 in yr 11 |
25 in yr 11 |
25 in yr 11 |
25 in yr 11 |
25 in yr 6 |
25 in yr 6 |
|
Workshop equipment |
127 in yr 11 |
127 in yr 11 |
127 in yr 11 |
127 in yr 11 |
127 in yr 6 |
127 in yr 6 |
|
Other equipment |
51 in yr 11 |
51 in yr 11 |
51 in yr 11 |
51 in yr 11 |
51 in yr 6 |
51 in yr 6 |
BACKGROUND DATA (SHEET 5 OF 7)
Roading
|
Region |
Sumatera and Sulawesi |
Kalimantan Barat |
Kalimantan Tengah |
Kalimantan Timur |
Maluku |
Irian Jaya |
|
Maintenance cost of existing branch roads |
0 |
0 |
0 |
0 |
0 |
0 |
|
Length of existing roads |
|
|
|
|
|
|
|
Corridor |
60 |
100 |
100 |
100 |
100 |
100 |
|
Main |
180 |
240 |
300 |
300 |
150 |
150 |
|
Branch (skid trail) |
600 |
800 |
1000 |
1000 |
500 |
500 |
BACKGROUND DATA (SHEET 6 OF 7)
Prices, IHH and yields
|
Region |
Sumatera and Sulawesi |
Kalimantan Barat |
Kalimantan Tengah |
Kalimantan Timur |
Maluku |
Irian Jaya |
|
Proportion of each species |
|
|
|
|
|
|
|
Meranti |
50 |
60 |
70 |
70 |
70 |
30 |
|
Rimba C |
40 |
20 |
15 |
15 |
15 |
65 |
|
Kayu Indah |
20 |
20 |
15 |
15 |
15 |
5 |
|
Price |
|
|
|
|
|
|
|
Meranti |
120 |
100 |
100 |
100 |
100 |
90 |
|
Rimba C |
100 |
80 |
80 |
80 |
80 |
80 |
|
Kayu Indah |
120 |
80 |
80 |
80 |
80 |
80 |
|
IHH |
|
|
|
|
|
|
|
Meranti |
11 |
11 |
11 |
11 |
11 |
10 |
|
Rimba C |
7 |
7 |
7 |
7 |
7 |
4 |
|
Kayu Indah |
14 |
14 |
14 |
14 |
14 |
14 |
BACKGROUND DATA (SHEET 7 OF 7)
Other information
For Irian Jaya and Maluku, add US$ 516,000 as other operating costs in year 2006 in Financial Table II, to reflect the cost of preparing another 20 year plan (RKPH) in this year, plus EIA (AMDAL), aerial photographs, and boundary marking.
Add the following travelling distances into Calculation Table V:
|
Sumatera: |
Road = 60 km; |
River = 100 km |
|
Other areas: |
Road = 100 km; |
River = 200 km |
