DATA SOURCES

Data on costs and prices in the Indonesian forest sector was collected from a variety of sources including :

1. MoF/ODA economic rent survey;

2. attachments to the letter from DJPH; and

3. published export data from BPS.

A copy of the data collected is given in Table 1-3.

Table 1           Log price data collected for the 1996 IHH analysis

Province	MoF/ODA economic rent data			DJPH data
	meranti	othercommercial	luxurywood	meranti	othercommercial	luxurywood
Sumatera	140	115	140	100	80	80
Kal Bar	100	85	100	100	80	80
Kal Tim	125	105	120	100	80	80
Kal Teng	120	100	120	100	80	80
Kal Sel	130	110	130	100	80	80
Maluku	130	105	125	100	80	80
Sulawesi	130	105	125	100	80	80
Java	- - -	- - -	- - -	- - -	- - -	- - -
Irian Jaya	- - -	- - -	- - -	90	75	50
Indonesia	125	105	125	100	80	80

All figures are in US$/m3 log at 1996 prices

Table 2           Plywood price data collected for the 1996 IHH analysis

Province	MoF/ODA  data		BPS data	DJPH data
	domestic	export	export	domestic	export
Sumatera	285	420	- - -	- - -	440
Kal Bar	255	375	- - -	- - -	515
Kal Tim	115	170	- - -	- - -	415
Kal Teng	300	445	- - -	- - -	- - -
Kal Sel	300	445	- - -	220	420
Maluku	390	580	- - -	- - -	- - -
Sulawesi	390	580	- - -	- - -	- - -
Java	- - -	- - -	- - -	- - -	485
Irian Jaya	- - -	- - -	- - -		- - -
Indonesia	290	430	460	220	455

All figures are in US$/m3 product at 1996 prices

Table 3           Sawnwood/moulding price data in the 1996 IHH analysis

Province	MoF/ODA  data			BPS data	DJPH data
	sawn	moulding		moulding	sawn	moulding
	domestic	domestic	export	export	domestic	export
Sumatera	- - -	- - -	- - -	- - -	- - -	750
Kal Bar	- - -	- - -	- - -	- - -	- - -	475
Kal Tim	110	190	595	- - -	- - -	450
Kal Teng	215	365	1 140	- - -	- - -	- - -
Kal Sel	355	600	1 870	- - -	75	- - -
Maluku	210	355	1 105	- - -	- - -	- - -
Sulawesi	210	355	1 105	- - -	- - -	- - -
Java	- - -	- - -	- - -	- - -	- - -	575
Irian Jaya	- - -	- - -	- - -	- - -		- - -
Indonesia	220	310	1 160	850	75	565

All figures are in US$/m3 product at 1996 prices

Interesting features of the data are that:

1. log prices reported to DJPH are much lower than in the MoF/ODA economic rent survey;

2. export plywood prices are similar in all data sources, but domestic prices vary; and

3. mouldings export prices are much lower in the DJPH data set than the BPS data, and much higher in the MoF/ODA data set.

Differences in log prices between different provinces were recorded in the MoF/ODA data, but the DJPH data was only split into 2 regions (Irian Jaya/NTB and elsewhere). Log price is not relevant to the calculation of economic rent however, because it only determines how much of the rent goes to the industry and how much to HPHs. For this reason, the DJPH figures were used in the SMAT forest industry models, rather than the more detailed MoF/ODA figures.

Product prices also varied between regions and data sources. Variations in export prices are likely to be due to differences in product mixtures, so an average export price of US$450/m³ for plywood and US$600/m³  for mouldings was used in the analysis. Variations in domestic prices may reflect local market conditions. However, the domestic market only takes a small proportion of output, so these variations would have little influence on economic rent. It was decided therefore, to use average domestic product prices for all regions of US$250/m³ for plywood, US$220/m³ for sawnwood, and US$310/m³ for mouldings.

Production cost data in the SMAT economic models was updated for inflation to 1996 prices, and data was replaced with results of the MoF/ODA economic rent survey where these have already been calculated. The MoF/ODA data has not yet revealed any major differences in production costs between provinces so the same unit cost data was used in all provinces. Summaries of the data for plywood mills and sawmills are given in Appendix 1 & 2.

HPH cost and price data were also updated for inflation. HPHs are the sector most likely to show differences in production costs and output volumes and values between provinces, but very little data exits about these differences. The MoF/ODA data about HPH production costs has not yet been fully analysed, so assumptions about the variation in costs and outputs were made based on a variety of sources such as the FAO Indonesian Forest Sector Review. The assumptions used are given in Appendix 3.