: The Relationship of Religion and State within the Context of Political Modernisation in the Reform Era. Political modernization in Indonesia to some extent has brought about political secularization. Yet, in the Pancasila state, the process will not lead to a secular state. The relationship between religion and the state is an intersectional relationship, neither fully integrated nor completely separate. In the reform era, democratic political modernization has implications on the emergence of new political parties, including Islamic parties. On the other hand, the freedom of expression in certain cases has led to disputes and conflicts that can disrupt social harmony and national integration. In this context, religion can provide a positive contribution as an integrative factor that values social diversity, and not as a disintegrative factor that supports social exclusivism.