Since the enactment of Law No. 7 in 1989 religious courts have gained an equal position in terms of jurisdiction to other courts in Indonesia a status that took a considrable time to realize. This article discusses the historical development of religious courts in Indonesia from the early period of Islam in the country to the post-independence period. It paticularly highlights internal and external factors which underpin the development of religious courts. Further this paper examines the development of religious courts under the auspices of the Supreme Court. In the early period of islam in Indonesia there was no explicit dichotomy between Islamic and public courts. Religious court had sole power in the judiciary. During the Colonial period however the Dutch and Japanese limited the authority of religious courts. after Indonesian independence the status and authority of religious courts did not change much until the implementation of the Law in 1989.