Dominated by mountainous topography, high rainfall, and erosion-sensitive soil types, and with the majority of its population living in rural areas as farmers, most of Indonesia’s watersheds are highly vulnerable to erosion. In 1984, the Government of Indonesia established 22 priority watersheds to be handled, which marked the start of formal soil and water conservation activities. Although it has not fully succeeded in improving watershed conditions from all aspects, something which is indicated by fluctuations in the area of degraded land, over the past 40 years the Indonesian government has systematically implemented various soil and water conservation techniques in various areas with the support of policies, laws and regulations, and research and development. These systematic efforts have shown positive results, with a 40% reduction in the area of degraded land over the last 15 years from 2004–2018. This paper reviews policy, implementation, and research and development of soil and water conservation activities in Indonesia over the last 40 years from the 1980s to 2020 and explores the dynamics of the activities.