7. Conclusion I argue that the prob

7. Conclusion I argue that the problem of property rights in forestlands is the underlying cause of deforestation in Indonesia. From the literature we can see that the problem of property rights cause deforestation both in a direct and an indirect way. On the one hand, unclear property rights on forestlands have led to a speculative attitude from migrants and local communities. Population growth and land scarcity drive population to open the forest inside protected forest areas, or forests within concession areas, hoping that after the land is cultivated, the government will recognize their claim to the land. On the other hand, the classification of “state forests” has caused the state to appropriate to itself local communities’ lands. This land usurpation by the state resulted in conflicts between the state and its agents, business interests, and local communities. In their survival strategies and protest against the state’s forest management policy, aggrieved local communities cleared protected forests, were involved in illegal logging operations, or set fire to open forests to reclaim their land. The answers to how the problem of property rights in Indonesian forestland occurs are quite straightforward, 1. State ownership claims over forestlands failed to recognize pre-existing property rights based on customary laws. Thus, the designation of state forests has resulted