Agroforestry has been practiced for decades and is undoubtedly an important source of income for Indonesian households living near forests. However, there are still many cases of poverty among farmers due to a lack of ability to adopt advanced technology. This literature review aims to identify the characteristics and factors causing the occurrence of agricultural subsistence and analyze its implications for the level of farmer welfare and the regional forestry industry. The literature analysis conducted reveals that small land tenure, low literacy rates, and lack of forest maintenance are the main causes of the subsistence of small agroforestry farmers. Another reason is that subsistence-oriented agroforestry practices are considered a strong form of smallholder resilience. All of these limitations have implications for low land productivity and high-sawn timber waste from community forests. To reduce the subsistence level of farmers, government intervention is needed, especially in providing managerial assistance packages, capital assistance, and the marketing of forest products. Various agroforestry technologies are available but have not been implemented consistently by farmers. Therefore, it is necessary to develop an integrated collaboration between researchers, farmers, and regionally owned enterprises (BUMD) to increase access to technology and markets. Although it is still difficult to realize, forest services, such as upstream–downstream compensation and carbon capture, have the potential to increase farmer income.