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The fall of the New Order regime brought Indonesia to democratic transition. the transition is understood as a phase in which democratization is being established. This period saw attempts to change the authoritarian system into a democratic one. Many political scientists see democratic transition as a crucial phase. In this phase, people are euphoric with the freedom granted by democratic government. They are learning how to live in a democracy. That is why the transitional period is also marked by extremities. The emergence of radical Islamic movements is one of the phenomena coloring this period in Indonesia. The rapid growth of radical Islamic movements in democratic transition of post-New Order Indonesia threatened the future of democracy. They attempted to apply shari'a in the state. Even one of these organizations clearly declared that they want to establish Islamic state. Some of Muhammadiyah scholars played important role in countering these radical Islam agendas. These scholars criticized the idea of formalization of shari'a. They negotiated salafism with democratic concepts.