In Indonesia, teak was naturalized in the early 16^th century, and Perum Perhutani, a state-owned company, manages forest plantations on public land in Java, encompassing approximately 3 million hectares, of which around 1 million hectares are teak. The country boasts an estimated total teak plantation area of 1.5 million hectares of various age classes, primarily concentrated in Java and Southeast Sulawesi, particularly in Konawe, Muna, and Buton. Java alone engages over 1.5 million farm families in teak cultivation, yielding over 2.0 million m³ of teakwood in 2011. Smallholder farmers invest in teak as a long-term savings measure to be used when large cash outlays are required, mitigating financial risks by developing cooperatives to market their products and creating wood-processing enterprises to add value to their wood, and provide other services.

Teak-based small-scale production systems in Indonesia allow farmers to diversify farm production, support food security, generate income, and reduce financial risk. Teak is a popular species among smallholders, often intercropped with various tree species to broaden product diversity for domestic use and sale. Teak seedlings with various brands such as super teak, superior teak, golden teak, JUN (Nusantara superior teak), JPP (Perhutani’s teak plus), and Jumbo teak caters to the growing interest in teak plantings, of which JUN clone, known for its rapid growth, allowing harvest after 6-8 years with a diameter of approximately 30 cm and a Mean Annual Increment (MAI) of 14 m³/ha/year attracted attention of farmers.

Indigenous native species promoted among smallholders in Indonesia include Manilkara kauki timber, softwood species like Alstonia scholaris, Mahagoni (Swietenia macrophylla), cempaka (Elmerillia spp.), and fodder species like Leucaena leucocephala. Manilkara kauki is a tropical hardwood tree that is highly valued for its strong and durable timber, which is used in construction, furniture-making, and for other purposes. Alstonia scholaris are popular among smallholders because they grow quickly and are easy to maintain. Mahagoni, on the other hand, is a slow-growing hardwood tree that is highly valued for its dark, rich wood, which is used in furniture, cabinet making and for decorative purposes. Cempaka, another hardwood tree species, is also popular among smallholders. All these species hold significance for construction, furniture-making, and fodder purposes, offering a diverse range of benefits. Financial schemes aimed at promoting quality teak timber production exist for smallholder plantations in Indonesia, though some may require careful scrutiny due to potential changes in government policies.