Constructing a regional Social Accounting Matrix using non survey method for CGE Modeling

The Government of Indonesia is committed to cut its emissions by 26% by 2020. In forestry sector, this is done through reducing emissions from deforestation and forest degradation (REDD) program. One of several pilot activities of the REDD Program is the Berau Forest Carbon Program (BFCP) which is located in the Berau District East Kalimantan Indonesia. The Program attempts to generate behavioural changes of the forests stakeholders like forest-dependent community, forestry/logging company and oil palm plantation company to contribute to the emissions reduction, which is formulated in the Program‟s strategies. Changes of these behaviours are reflected in the costs being borne by the relevant forest stakeholders as well as the incentive rewarded for engaging in the programme. This paper focuses on the dataset preparation i.e. the Berau District Social Accounting Matrix for CGE modeling analysis of the above context. A non survey method was employed to generate the regional accounts and was it combined with available data as well as experts‟ estimates.