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This chapter recounts the development of a forestry policy innovation designed specifically to protect the customary rights of local people after their agroforests were subsumed into an area of state forests. In the 1990s such actions were a common problem in Indonesia, where local people had developed verious kinds of agroforests covering large areas. Rubber agroforests alone covered more than 2.5 million hectares in the late 1980s (de Foresta, 1992). Regrettably, community-created agroforests were ignored in the designation of state-forests boundaries outside Java in the late 1980s, and in the adoption of provincial Forest Land-Use Master Plans by Consensus (Tata Guna Hutan Kesepakatan, or TGHK). The Krui region, in West Lampung district, on the southwestern tip of Sumatra, was seriously affected. More that half of the area covered by damar agroforests that had been planted and managed by local people for generations was designated as state forest in 1991 and officialy gazetted as such in 1996 (Michon et al., 2000, 2007).