Edgs Working Paper

This paper explains the transformation of Pancasila as an institution that governs state religion relations in Indonesia. Why has Pancasila been stable at the national level but discontinuous at the subnational level since Indonesia’s democratic transition and decentralization? By tracing Pancasila’s history back to its origin, this paper demonstrates that territorial interest has been an important factor in shaping Pancasila’s trajectory of stability and change. Territorial interest consists of two dimensions: the national-level interest of crafting unity and the subnational interest of maintaining autonomy from the central government. Territorial interest defines the logic of coalition building among actors and gives a motive to either change or sustain an institution. At the national level, the territorial interest of crafting a unitary republic has incentivized coalitional opposition against the Islamists who have tried to change Pancasila as an institution. At the subnational level, territorial interest of establishing financial and political autonomy vis a vis the central government has influenced the coalitions of actors to establish local identity that is oftentimes identical with religion and to pass resourcegenerating bylaws. Presented at the 2012 Arryman Fellows’ Symposium, on May 18, 2013 as part of the Equality Development and Globalization Studies (EDGS) program at Northwestern University, with generous support from the Rajawali Foundation.