Development of intercropping sesame and palawija in forest areaDevelopment research of sesame intercropping was conducted in KPH Saradan forest area, Madiun from March to December 2001. The research used 10 ha of 3 years old hardwood tree forest area. There were 36 farmers involved, each of them had 0.25 - 0.5 ha (o work on. The land was divided in(o 2 pats, one pat was planted with sesame and cassava, while the other pat was planted with cassava and com. The technology offered to the farmer consisted of: the use of superior variety, good seed, on schedule plantation, thinning up to 2 plants/hole, proper fetilizer, proper dose and application, and weeding. Parameters observed consisted of production input (i.e. seeds, fetilizer and pesticide) with the price, use of family worker and outside family worker with the salary rate, sesame and palawija production with their selling prices. The result showed that the technology accepted by the farmer was Sumberrejo 1 superior sesame variety, superior sesame seed, schedule of seed planting, fetilizer dossage and application, and weeding. The recommended technology that was not accepted yet by (he farmers was first fertilizer application at planting time and thinning of sesame. Area of sesame intercropped with cassava produced 657 kg of sesame and 3 210 kg of cassava per ha. Area of cassava intercropped with com produced 3 350 kg of cassava and 1 220 kg of com per ha. There was a profit of Rp 1 124 000 per ha in sesame + cassava intercropping with B/C ratio 1.40, while there was a financial lost of Rp 424 000 every ha in cassava + com intercropping with B/C ratio 0.88.