In this study, model of deforestation is expressed as a function of the direct causes, each of these expressed as a function of the indirect causes. The socio-economic growth variables, such as population and GDP growth, were used as indirect causes of deforestation. The model assumed that deforestation was caused by wood consumption, forest product export, conversion to cropland, and forest fire. This study also calculated the elasticity of forest fire deforestation with respect to the population based on forest fire data between 1991 and 2000. Finally, it analysed the carbon emissions due to deforestation rate in Indonesian forest.