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In Indonesia, 60 million people live within 1 km of state forest. The government of Indonesia plans to grant community titles for 12.7 million hectares of land to communities living in and around forests. These titles allow for using nontimber forest products, practicing agroforestry, operating tourism businesses, and selective logging in designated production zones. Here, we estimate the early effects of the program's rollout. We use data on the delineation and introduction date of community forest titles on 2.4 million hectares of land across the country. We find that, contrary to the objective of the program, community titles aimed at conservation did not decrease deforestation; if anything, they tended to increase forest loss. In contrast, community titles in zones aimed at timber production decreased deforestation, albeit from higher baseline forest loss rates., Competing Interests: The authors declare no competing interest., (Copyright © 2021 the Author(s). Published by PNAS.)