This article describes the dynamics of Indonesia’s intelligence reform from combatant intelligence posture during the post-independence revolution of 1945 to the authoritarian state intelligence under the New Order regime after 1965, and to the era of intelligence reform after the 1998 reformation movement. Recently, the challenges for Indonesian intelligence institutions have shifted from the need for legislation and political policies to the need for a democratic intelligence posture and the ability to face emerging security threats. Another challenge is the sectoral rivalry between the military, police, and strategic intelligence services, all of which are oriented towards internal security threats and domestic intelligence operations. Domestic threats form a contested operational domain, a ‘grey’ zones of defense, security, and intelligence threats.