The Indonesian rice economy has been increasingly squeezed since the agreements on agriculture under the WTO arrangements came into effect by 1 January 1995. This was attributed to excessive quantity of rice imports, especially since the economic crisis in mid 1997. The decreased world prices have severely affected the domestic prices that brought about the Indonesian rice to become increasingly less competitive. To deal with this crucial problem, the Indonesian government launched combined protection policies, including tariff and nontariff measures. Since 2000, the tariff rate is Rp 430/kg, and since 2003 the nontariff measure involves import arrangement, control and restriction. In relation to this problem, the objective of the present paper is to estimate the effects of the tariff and nontariff policies on the Indonesian rice economy both at the aggregate and farm levels. Using a partial equilibrium model, this research found that the protection policies have significantly reduced import quantity and, at the same time, significantly increased the domestic price, domestic production, producer's surplus and farmer's income. Elimination of one or both policies would bring back the Indonesian rice industry into bankruptcy. It is suggested, therefore, that: (1) The Indonesian government needs to retain the existing combined protection policies; (2) Indonesia together with other countries has to make more pressures on other (exporting) countries so as to reduce their export subsidies and domestic supports that would improve world prices; and (3) Always attempting improvement in domestic rice farming, processing and marketing so as to improve competitiveness.