Biochar is a carbon-rich material produced through the pyrolysis of organic biomass, offering promising benefits for improving soil quality and rice productivity in tropical regions. In Indonesian paddy fields, biochar has been shown to enhance soil structure, water retention, nutrient availability, and microbial activity. These improvements contribute to increased plant growth, grain yield, and nutrient use efficiency, especially when biochar is combined with chemical or organic fertilizers. Local agricultural residues provide sustainable feedstocks for biochar production. However, widespread adoption in Indonesia faces challenges, including limited access to pyrolysis technology, inconsistent product quality, and lack of national guidelines. This review emphasizes the need for integrated efforts across research, policy, and farmer training to optimize biochar application for sustainable rice farming in Indonesia.