Author Scotland, N. & Whiteman, A.

Year of publication 1997

The Forest Concession Model has been designed by the ITFMP Senior Management Advisory Team (SMAT) to assist with some of the complex calculations required in financial appraisal. The model is designed specifically to evaluate financial performance of the forest concession industry (HPHs). It can be used to evaluate data representative of Indonesia as a whole, particular regions in Indonesia or data for any given forest concession. The model will calculate the Internal Rate of Return (IRR) and Net Present Value (NPV) based on cost and price data which the user must enter into the model. Sensitivity analysis is automatically undertaken, since the model calculates the Net Present Value of the investment at three different discount rates specified by the user. The final calculation undertaken in the model is that of identifying how much of any economic rent which exists on the resource is being captured by the Government of Indonesia and how much is going to the private sector as an excess profit.