There have not been many studies on the relationship between local wisdom,Hinduism,and religious education in the present day Indonesia,though since the Indonesian Independence on August 17,1945 it has been known that the freedom of beliefs based on the Pancasila ideology has been declared.It can be understood since the majority of the Indonesians are Muslim and there are only small proportions of the minority groups,including Christians,Catholics,Hinduism,Buddhism,and Confucianism.Indeed,for a long time,the existence of certain religion,particularly Hinduism has become a political debate.However,since more than a decade that was in 1959,Hinduism has been acknowledged as a formal religion.The question is:How can we consider that Hinduism has been practiced and has a proper place in the context of religious life in Indonesia?In order to be able to answer this question,this paper will focus on certain issues:Firstly how was Hinduism in the New Order regime being practised?Secondly,how is Hinduism in the Reformation period being practised?Thirdly what are challenges and opportunities to practice Hinduism in the democratic government?It is expected that these questions will be able to have a better understanding,especially on local wisdom,Hinduism,and religious education in the present day Indonesia.