Focusing on the recent Moluccan conflict (1999–2003), this article takes a closer look at a traditional village federation called Hatuhaha on Haruku island (Central Moluccas) and its specific version of Islam. From an anthropological perspective, it explores the dynamics in the Islam-adat relationship and the role of historical developments and politics on a local, national and international level. It not only throws new light on the so-called ‘religious’ conflict in the Moluccas, but also helps to highlight the diversity and complexity of Islam in contemporary Indonesia and the integrative and exclusivist potential of both Islam and adat. It underlines the importance of identity politics and the revival of tradition in post-Suharto Indonesia and reflects on the concepts of system-immanent and system-external violence or, more generally, of conflict and peace.