In Indonesia, the ethnic Chinese people played a significant role in the economic structure since independence.
However, in the socio-political arena, they are a minority group. The economic dominance of the ethnic Chinese led to
racial animosities between the ethnic Chinese and the ‘pribumis’ or native Indonesians. From the colonial period, the
‘pribumis’ felt insecure about the competition from the Chinese entrepreneurs, and this insecurity is still having an effect
on the ‘pribumis’. This article mainly tries to focus on the position of the ethnic Chinese people in Indonesian society with
special reference to their relationship with the native Indonesians. It also tries to highlight the political instability as well
as ethnic conflict mainly during the New Order era of President Suharto.