A multi-jurisdictional governance system, polycentric power regimes, and overlapping rights complicate policy responses for addressing forest governance problems in Indonesia. Confronting issues that have existed for centuries as part of Indonesia's socio-cultural and political reality cannot easily be solved at the macro-scale. However, we argue that they can be tackled at the micro-scale. Adaptive co-management could offer a means of finding collaborative solutions to these problems, and we believe this approach will be effective when the problems are defined locally in a specific area with a limited number of stakeholders. This paper examines the capacity of Forest Management Units (FMUs), as the lowest level operational structure of forest management in Indonesia, to facilitate reform for adaptive co-management approaches. We examined this through an analytical framework derived from the Problem-Driven Iterative Adaptation approach. This paper identifies the importance of stakeholders' acceptance to enable FMUs to coordinate adaptive co-management.
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