The purpose of this paper is to examine the process of Islamic change in Indonesia since the 1970s, which is commonly called 'Islamic resurgence' or 'Islamization.' A brief analysis of the reasons for Islamic resurgence is followed by discussions on its long-term effects on the life of Indonesian Muslims. Shift in the ways Islamic matters have been treated in public, gradual realization of what Islamic groups have demanded in non-religious areas, stipulation of local regulation based on shariah and spread of radicalism are to be investigated one by one. With these examinations, it will be argued that the most significant change throughout the last four decades has been the surge of Islam as a reference point to interpret everyday life of Muslims. The dichotomy of 'Islamic' and 'non-Islamic' is instated as a key in Islamic discourse and the Quran and Hadith, as a criterion to judge whether certain views and behavior are Islamic or not. These have strengthened the position of scripturalism in Indonesian Islam. Islamic resurgence has also resulted in the acceleration of the diversification of Indonesian Muslims. Muslims with radical, fundamental, reformist, traditional and liberal views coexist, competing for stronger social and religious influences. As radical and fundamental groups have been more active in dealing with socio-political affairs recently, whether their active involvement will result in wider influences over the ordinary Muslims is the key to understand the future dynamics of Indonesian Islam.