Prior to the establishment of the Badan Restorasi Gambut (Peatland Restoration Agency) Republic of Indonesia, in 2016 the Government of Kutai Kartanegara Regency had an initiative to protect the peatland ecosystem area. The initiative from the Government of Kutai Kartanegara to protect peatland ecosystems as a conservation area in the Central Mahakam region, became a debate between ecological and socio-economic of the rural community perspective. It also created a debate about authority of the government at the national and district level related to protecting peatland in Indonesia. This research was conducted in two villages around the Central Mahakam peatland area in the period October until December 2021 using a qualitative approach through in-depth interviews, focus group discussions, and document analysis. The results of this study indicate the change in the status of the area in the peat ecosystem affects the agrarian structure from the common pool resources that was previously controlled and utilized by the rural community to the state property right. Agrarian structure change has consequences for the living space of people who depend on peat ecosystems, such as fishermen and farmers. There is a potential problem with the rural livelihood vulnerability, because they are excluded from their living space. However, rural communities around peatland conservation areas have various social, economic, and political resilience strategies in dealing with changes in agrarian structure. There is a "negotiation room" hybrid institution, between customary property rights and state property rights in peatland conservation areas.

Keywords: Agrarian Structure, Hybrid Institution, Livelihood, Peatland Conservation, Resilience