This paper provides a useful overview of government policies and regulations relating to the seed industry covering the early stage of the formal seed industry, seed trade, seed certification, crop varieties protection and seed producer's registration. Seed policies are generally renewed by the government along with progress in the seed industry. The paper also assesses the conduct of the National Seed Agency and its related institutions in controlling production and marketing of corn seed in East Java. The National Seed Agency is one of four government institutions dealing with national policies on seed industry and was set up specifically to control seed production and distribution among seed producers in Indonesia. One of the major challenges highlighted by the author is the open sale of uncertified hybrid corn seed in several regencies in East Java, which is punishable under the Act on Crops Practice 12/1992. However, the government has not taken any action to implement the law. The author thus notes the need for government to implement law enforcement to protect both producers and consumers.