: Education applied in Indonesia is influenced by various factors; among them is the government policy. Government policies, ranging from colonial rule, pre and post-independence until the early New Order period seemed to ignore Islamic education. This leads Islamic educational institutions to have many weaknesses that must be addressed. The weaknesses among them are low in human resource (HR), management, and funds. They have not been able to be optimally pursued according to Islamic ideals, perceived to be not able to put into realization the transformative Islam, and Islamic institutions are less in demand by the public. These weaknesses can be overcome eventually because of the struggle and patience of the people and leaders of Islam, and more attention has been given by the government that produces various policies and regulations that bring Islamic education and Islamic educational institutions to play an increasing role in Indonesian education generally