This paper analyses the various power relations that shape forest policy and governance reform in Indonesia. It applies Foucault’s theories on power to several key initiatives introduced as part of REDD+ (Reducing Emissions from Deforestation and Forest Degradation). By analysing both the operation and the effects of power relations the paper accounts for how competing actors influence major policy change, and the impact different policies have on governing multiple forest users. Sovereign and disciplinary power underpins government attempts to implement new regulatory, planning and enforcement functions across the forest estate. Policy instruments such as the concession moratorium create securitised territorial zones that enable sustainable forest practices to operate. By contrast, forest management units operate through inclusive strategies that discipline forest users into responsible managers, whilst enforcement excludes those who contravene the law. Productive power and resistance explain efforts by government and non-government actors to progress or limit REDD+. Productive power operates through the multiple activities that generate new knowledge on incentivising carbon, and by engaging new subjects in carbon projects. Community resistance draws on discourses and localised subjectivities focussed on forest dependency and rights, whereas industry networks have been adept at positioning REDD+ as a threat to national development.