The horizontal conflict (between Muslims and Christians) which began with the riots in Ambon City have in the meantime spread to villages throughout the entire Maluku region. Initially, the conflict which started on 19 January 1999 had actually reached a cooling down phase, and was expected to be resolved amicably. Unfortunately several months, later the seeds were planted for the second phase of the conflict on 15 July 1999 and which has not yet been resolved. From the time of the initial conflict to the time of the second phase of the conflict, the data collected bears out that many people have died and sustained wounds, and many houses have been burned down/destroyed. Unfortunately, during the second phase of the conflict, actions of an anarchical nature carried out by certain groups have virtually destroyed all social and economical centres which were considered strategic and vital to the economic development in Maluku. The Pela Gandong traditional concept which had been been the pride of Maluku at the national as well as international level has been effectively wiped out by the vengeful spirit of retaliation based on differences of religion (which has been a central issue in the conflict). In view of the complexity of the problems underlying the conflict, to find a solution it is necessary to pinpoint the initial cause of the conflict, while at the same time going through the process of mediation in order to reconcile the conflicting parties as well as work toward the rehabilitation of the people who have directly and indirectly become the victims.