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Wood and paper industry sector become the most heavily sector which has been charged with trade remedy in Indonesia mostly due to the implementation of log timber export ban policy. The implementation of this policy since 2012 has received many trade remedy allegations, particularly subsidy allegations by trading partner countries. This study aims to evaluate the log timber export ban policy and proposed alternative policies that could minimize the potential for alleged subsidies. The study used some different methodology included a normative juridical legal analysis based on the DS491 case study: US Coated Paper, regulatory impact analysis (RIA), and CGE Model to simulate the impact of trade remedy on Indonesian exports and the impact of alternative policies. The results shows that the imposition of trade remedy by partner countries has a negative impact on the export performance of Indonesian wood derivative products. Based on the DS491 case study, the log timber export prohibition policy concluded as a subsidy. While the impact of log timber ban export on financial contribution is still debatable. This study recommended that better alternative policy option that provide benefits in supporting forest sustainability and the continuity of downstream industries made from wood is to continue the log export ban by adjusting the legal text with WTO principle, namely conservation of natural resources in Article XX GATT 1944 (general exclusion) and clarifying that the control of forests by the government is not dominantly supporting the formation of domestic market prices.