Religious pluralism was embedded in traditional society of Indonesia and especially that of Java, although not articulated as clearly as in modern society. As not grounded on reflexive thinking over taken-for-granted reality, however, the pluralism in traditional Java was liable to easy and rapid transformation. This happened since the 1980s when Islamic revival or resurgence increased dramatically the number of Muslims trying to fulfill their religious duties. As the influences of scripturalism has widened, Muslims’ attitude towards other religions also changed. Differences among religions were highlighted, efforts to regulate social interactions between Muslims and non-Muslims were intensified, exclusive attitude towards non-Muslims was strengthened, and socio-cultural compartmentalization based on religious identity started to be visible. The 1990s saw a surge of a new religious current countering the widening influences of scripturalism. This current, which is commonly called liberalism, neo-modernism and substantialism stands against literate understandings of the Scriptures and puts forwards contextual, historical and pluralistic interpretations. Liberalism is a product of critical and painstaking efforts to find out relevance of Islamic teachings in the modern context. The purpose of this paper is to examine liberal Muslims’ mode of interpreting the Quran, their perspectives on other religions and pluralism, and reactions they receive from traditionaland scriptural Muslims. The second section of this paper deals with religious interpretations of those who pioneered the introduction of liberalism into Indonesia. The third and forth examine how the new religious perspective is understood and applied to by two liberal organizations. The last section looks at criticisms of traditional and scriptural Muslims to liberalism. It is expected that this paper helps us to understand recent religious changes in Indonesian Islam and a possibility of creating a religiously plural society in Indonesia where radical, fundamental and scriptural interpretations of Islam have been gaining popularity.