This article explores the role of schools in responding to the ambivalent relationships between the Chinese and non-Chinese in Indonesia. It examines the multicultural position that Indonesian teachers adopt and the pedagogical strategies they employ in promoting positive inter-ethnic relations. Through interviews with teachers in three schools with different student ethno-religious compositions in Medan, the article argues that the multiculturalism paradigm embraced by the majority of teachers leans towards a liberal multicultural outlook, employing mostly content integration and prejudice reduction. The heterogenous school in the study has more potential to empower a multicultural school culture due to the school demography compared to the homogenous school. However, such efforts still focus heavily on maximising intergroup contact and less on engaging students critically. This article considers theories of multiculturalism in tandem with Indonesian's concept of nationalism and national identity, including the vision of diversity enshrined in the national motto "Bhinneka-Tunggal-Ika" (Unity-in-Diversity).