Despite widespread bench-terracing soil erosion remains a major problem in Java’s uplands. To elucidate the causes for this lack of impact, runoff and erosion processes were studied at a variety of spatial scales within a volcanic catchment in West Java. Research indicated that soil loss occurs via rain splash and wash of rainfall-detached sediment by shallow overland flow from the terrace riser and bed, and via runoff entrainment of sediment deposited in the central terrace toe drain. The terrace erosion and sediment transport mode (TEST) was developed to physically describe these processes, as a function of vegetation and soil surface cover where appropriate, yet use as few parameters as possible. Runoff generation was described by the spatially variable infiltration model (SVIM) and a two parameter rainfall depth-intensity distribution was assumed to derive a simple analytical expression for storm runoff depth. In a similar manner expressions were derived for effective rainfall kinetic energy to predict rainfall-driven transport using a newly developed model, and for effective runoff rate to predict flow-driven transport using GUEST model theory. The model and its components were tested using measured runoff and soil loss from 31 sections of terrace beds or risers and from six terrace units during two seasons. The model generally performed satisfactorily and provides a useful new tool for assessing the impacts of soil conservation measures on bench terrace runoff and soil loss.