A separable goal-programming model of the Indonesian forestry sector

The latest of three models designed to analyze long-term development plans of the forestry sector of Indonesia is presented. The planning problem consists in determining the geographic pattern of forest exploitation, industrial processing, and transportation which minimizes total costs. Costs include direct costs of various operations, and indirect costs of not satisfying domestic demand and of not fully using potential exports. The model has a goal programming structure. Goal variables measure deviations from demand and export targets, or industrial and port capacity expansion at various points. Other variables relate to the transport of logs, sawnwood and plywood, and fuelwood. Cost of port capacity expansion is a non-linear function of capacity, modeled by separable programming.