Future policies on NR development in Indonesia which is proposes not only for achieving higher welfare of the rubber smallholders, but also for enhancing benefits for rubber industry in economical, social, and environmental aspects. There were some problems faced by the Indonesian rubber industry, on farm segment as well as off farm segment. In the on farm segment, low achievement of average yield/hectare/year, weaknesses of farmers institutions, inadequate skill and knowledge, lack of technological input based application. In off farm segment, there is no significant increase in downstream industries development. The industrial structure of NR in Indonesia as also characterised by lack of capacity in its downstream industries, namely, the major products of NR are dominated by primary products. Then the added value generated from rubber industry is captured by importing countries. The real price of rubber primary products in international market tends to decline over time, in contrary, at the same time, the rubber downstream products and derivatives rubber products tend to increase. This situation is sufficient to call for strengthening rubber downstream industries in order to be able to capture potential of rubber industry sector in Indonesia. These opportunities are opened and available for both domestic and foreign investment. Instability on the international price of NR product has been going on since the liquidation of INRO in 1999. Meanwhile there is no commitment or agreement among NR producing countries to regulate and manage the supply side. It would be a great concern for any stakeholders to initiate to set out national policies for supporting and developing NR industry in Indonesia. The Indonesian government is responsible in preparing and promoting for such new policies. Some policies that have been set are 1) Empowering the rubber as well as other crops for smallholders to be able to capture benefit from the market; 2) Technology generation and utilization in rubber plantation to increase production and productivity; 3) Promote incentive in the area of rubber to reduce transaction cost; 4) Deregulation, debirocratization, and decentralization of rubber industry and crop development; 5) Investment policy to improve infrastructure in the area of rubber; and 6) Elimination of social conflict by corporate community relation strategy.