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"The relationship between general environmental and development is examined and analyzed by comparing the developmental implications of the Indonesian forestry sector with the Indonesian Oil and LNG sector. Specifically the Indonesian teak forests based on the data provided by Nancy Lee Peluso's book "Rich Forests, Poor People," (1992) on the island of java and the Indonesian Oil and LNG industries in Bontang, East Kalimantan Based on the writer's research data (1997). The general environment and development relations of the energy and forestry sectors have both similarities and differences and they are compared during the New Order period (1966-1997) with specific emphasis on the role of the state within the Indonesian political economy."