The estimation methodology consists essentially of multiplying the area burned in August–December 1997 and multiplying those by per hectare values for various vegetation types and land uses.
The per hectare values are taken from existing data on Indonesia and, failing that, from comparable ecosystems elsewhere with appropriate adjustments.
Economic damages are in net terms (i.e., profit foregone, not total revenue foregone). Discounting of future costs was done at a rate of 10 per cent.