There are two forces at work here. The obvious, and major one is forest clearing by oil palm companies. This has gone of for two decades and Indon has done nothing to stop them, not even all those legislation has proved effective because no enforcement at all.
The second force is the poverty trap that the villagers are stuck in as a result of the social system, and the system of land ownership which essentially compels them to stake claim on land through forest clearing and cultivation.
The point is that these poor villagers may have no choice, but clearly the rich oil palm companies have a choice. Majority are owned on the Indon and Malaysian side, but we also have stake in them. The government of Indonesia also has basically ignored the issue for two decades. It is not too far a stretch to assume that many officials are on the take from the oil palm industry with hands in cookie jar.
Unless there is some way for the wider international community to inflict financial damage via sanctions against companies or other means, things will not change.