Abstract
This chapter argues that one of the main causes of these conflicts and tensions is rooted in the unsettled discourse on the state-religion relationship in Indonesia as a result of the central role of the principle of Ketuhanan Yang Maha Esa in Indonesia's legal and political systems. It reviews the history of the state-religion relationship by underlining the 'invention' of the clause of Ketuhanan Yang Maha Esa and the contest over its interpretation, particularly by Muslim activists. The fragile political atmosphere immediately following Indonesian Independence 'forced' Indonesian leaders to focus on entering a possible armed struggle against colonial authorities attempting to regain political power. Many Islamic activists were very concerned about the growing political influence of Partai Komunis Indonesia (PKI). The Soeharto regime used the loose terminology of the first principle of the Pancasila to construct the meaning of Ketuhanan Yang Maha Esa as a new 'Indonesian identity'.
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