The policy of decentralization was issued by the Indonesian Government in 1999. It is stated that each provincial, municipality, and district level government, which generally refers to the local governments, are responsible for management of its own local natural resources.

This policy has caused disputes between the governments as there were ambiguities. The management of national parks and other protected areas were supposed to be maintained by the central government. However, due to the lack of accompanying operational guidelines and regulations, the local governments thought they were responsible for the national parks and protected areas as well and began exploiting the natural resource. When told that the central government was in charge, they refused to recognize the correction as they were keen on the revenue generated by the palm oil industry. Therefore, it is difficult to find a solution which can be agreeable by both parties.