The forest tenure policy remains a controversy in Indonesia specially, on the issues of how to maintain forest on sustainable way and at the same time how to share of benefit of forest resources to the local communities. Yet, the state is the main actor on forest tenure in Indonesia could not succeed to do so. This paper discusses the Community Based Forest Management (CBFM) programme in Indonesia with some details relating to the Indonesian political and legal basis on land and natural resources. This paper also describes the conflict of forest resources and the state’s failure in forest resources management in Indonesia. CBFM can be used as an alternative to share resources and conserve the forest by engaging local communities.