There have been several major research efforts on the rate and causes of Indonesia's deforestation in recent years and much associated literature, but there is still no consensus in the research community on these issues. This paper reviews the areas of uncertainty and confusion, and proposes questions that must be answered to get a better grasp of the subject. Among the key questions are: (1) How are we to define "forest", "deforestation" and "agency” in the context of Indonesia?

If one is of the mindset that the world is fundamentally chaotic and irrational, then the discpline of economics probably has little to offer. But if one accepts the notion that there is some method to the apparent madness of individuals, governments and organizations, then economic inquiry does have no some contributions to make. In this excercise, we argue that economic criteria and indicators of sustainable forest management should reflect the dimensions of efficiency, equity and sustainability, and need to look beyond the forest stand to institutional and policy issues.