Despite the fact that ethnic Chinese have lived in Indonesia for a very long period, particularly from the time of Dutch colonialism there, they have continued to experience discrimination and bad attitudes in their daily lives. This study aims to describe the phenomenon of prejudice against people of Chinese ancestry in Indonesia, explain the traits of Indonesians that contribute to prejudice against people of Chinese ancestry, and identify the social and political effects of the strong prejudice against people of Chinese ancestry that exists in Indonesia. The findings of this study, which used a constructivist methodology from international relations and qualitative research techniques, suggest that the failure of Indonesians to forge a strong collective identity is what leads to the escalation of prejudice against ethnic Chinese in that country. The outcome also demonstrates that the gradual treatment of Chinese ethnic minorities as equals after Indonesian independence highlights the urgent necessity for the government to act as an agent capable of altering social structures and fostering a sense of unity