Policy forum: Between incorporation and reappropriation – The unresolved dilemma of oil palm in Indonesia's forest zones

This Policy Forum examines Indonesia’s shifting regulatory approaches toward oil palm cultivation within forest zones, from early tolerance and administrative accommodation (2012–2019) to more recent enforcement-oriented approaches introduced under Presidential Regulation No. 5/2025. Drawing on field observations in Central Kalimantan and West Sulawesi, alongside analysis of policy and legal documents through early 2025, the article argues that this policy shift reflects enduring tensions among economic productivity, social inclusion, ecological restoration, and territorial control within Indonesia's forest governance system. The article shows that Strategi Jangka Benah/ SJB (rehabilitation period) sought to manage existing oil palm cultivation through phased rehabilitation and agroforestry integration under social forestry frameworks, while attempting to avoid abrupt livelihood disruption among smallholders. However, implementation was frequently constrained by regulatory ambiguity, uneven institutional capacity, uncertain market incentives, and differing interpretations regarding the long-term status of oil palm within restored forest landscapes. In contrast, Presidential Regulation No. 5/2025 emphasizes enforcement authority through administrative sanctions, land reclamation mechanisms, and state-directed restoration arrangements. While formally framed as law enforcement and ecological recovery, the regulation also raises broader governance concerns regarding territorial reappropriation, unequal access to future land-control arrangements, and the potential marginalization of vulnerable smallholders within emerging restoration regimes. Rather than interpreting these policy shifts as isolated regulatory changes, the article conceptualizes them as part of a broader governance trilemma in which economic returns, ecological integrity, social justice, and state territorial authority remain difficult to reconcile simultaneously within commodity frontier governance.