The paper describes underlying causes of conflicts between local people in Bulungan Research Forest (BRF), Indonesia with coal-mining and logging companies. Results show that conflict between local people and mining companies was triggered by the fact that the mining operation caused water and air pollution and soil degradation. Another cause for the conflict was the compensatory facilities (e.g. clean water, electricity, compensation fee, etc.) provided by the companies to local people that were often delayed or unsatisfactory. Local people perceived that their major problem with logging activities was the adverse impact to residual plants such as rattan, eagle wood, medical plants, etc. Not only that, logging companies did not allow local people to cut trees for their own uses such as for houses or churches. The paper concludes that there is a need for negotiation among those parties involved in conflict in such a way that negative impacts can be reduced and positive impacts can be enhanced.