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Indonesian government plays an important role in developing religious education. Since the 1970s, the government has promoted basic education for the Indonesian citizen, modernizing primary and secondary education and including religious subjects in the national curriculum. Furthermore, from the early beginning of the New Order era, Islamic educational institutions such as pesantren and madrasah—which are mostly founded by private or informal institutions— must also follow the national curriculum and comply with state regulations. On the one hand, pesantren is continuously recognized as an autonomous institution, and honored as a community-based educational institution. Madrasah, on the other hand, is supported to teach Islam and religious subjects, but at the same time it is required to introduce sciences and general subjects to its students.During the 1980s and 1990s, major changes in the curriculum of Islamic religious education in Indonesia have turned madrasah into education institutions increasingly integrated in Indonesia's national education. In fact, the share of general studies reached 70%, while religious studies have been reduced to only about 30% of madrasah curriculum. As a consequence, all madrasah graduates have equivalent degree recognized by other schools in general, enabling them to pursue undergraduate studies in public universities.DOI:10.15408/sdi.v25i1.7284

Religion is predicted to dissipate from social significance through the processes of development or economic modernization. Classical secularization theory forecasted religion in the modern era will face some circumstances such as 1) the decline of personal faith, religious beliefs and practices; and (2) the retreat of religion from public space (Cassanova: 1994, 2010). However, the supporters of secularization and modernization theories failed to notice that religion did not disappear from the public sphere. The opposite occurs in Southeast Asia. Economic development program and modernization could work hand-in-hand with religion in the region (Feener and Fountain: 2018).In the context of Indonesia, the issue of religion has gone through ups and downs. The story of Indonesia's revival of Islam had been begun when the country experienced anti-communist campaigns of 1965-66 (McVey: 2006). Since then, the government obliged all of its societies to profess one of Indonesia's recognized religions: Islam, Catholicism, Protestantism, Buddhism, and Hinduism (now Confucianism has been added to the list) (Qurtuby: 2013). The pressure for all citizens to embrace one particular recognized religion resulted in great conversion from local religions/faiths—Hindu, Buddha, abangan, etc.—to Islam (Hefner: 1987a, 1987b, 1989; cf. Beatty: 1999). It then witnesses rapid growth of the grassroots Islam and the spread of Islamization (Houben: 2003).