This paper examines the role of schools in slowly Islamizing Indonesian society and politics. Why is this Islamization happening and what does it portend for the future of democracy in Indonesia? The research is mostly qualitative and done through field experience, interviews, and data collection. It is concluded that radical madrasahs are not the main generators of Islamization, but instead the widespread prevalence of moderate Islamic schools are Islamizing Indonesian society and politics. The government began the "mainstreaming" of Islamic elementary and secondary schools, most of which are private, in 1975. This has continued and grown, making them popular options for education today. The government has more recently been increasing the role of state run Islamic universities by expanding their degree offerings to include many nonIslamic disciplines. The use of Islamic schools to educate Indonesians is due to the lack of development of secular public schools and high informal fees charged for the public schools. By making Islamic schools an attractive option that prepares students for success, society has been Islamized slowly as the number of alumni increases and as these alumni play leadership roles in society, business, and government. This Islamization is not of a radical nature, but it is resulting in more Islamic focused public discourse and governing policy, and low levels of tolerance for other faiths and variant Muslim practices. The recent addition of civic education in Islamic schools, which has been exalted by Westerns, is taught with specific Islamic interpretations that change the meaning of concepts, particularly pluralism. The resulting consequence is that while Islam and democracy's compatibility are stressed in Islamic civic education, tolerance for pluralism is truncated. Islamic schools are homogenizing Islam in Indonesia and shaping the public discourse and democracy in ways that are infused with modernist Islamic values.