Abstract: Since the opening of palm oil plantations in Sanggau in 1995 it often occurs dispute between the companies with palm smallholders. It can be seen from land management tenure of more than 90 percent controlled by the company exclusively. Phenomenon of conflict potential include the existence of structural conflict by the government, annexation and land overlap and deceit committed by the company. Allegedly, the company did not respect the local institutions in the fields of conflict resolution, giving rise to a protracted conflict between the company with the local community.