The Chinese minority plays a dominant role in the economies of Indonesia and Malaysia, a fact that evokes indigenous resentment. However, Indonesia and Malaysia dealt differently with the issue. Malaysia legislated the Malays into the economy and protected Chinese citizenship, making them an integral part of a multicultural state. By contrast, New Order Indonesia adopted policies of economic manipulation, forced assimilation, and unequal citizenship. Only when the New Order regime fell did Chinese integration begin. The policy trajectories of Indonesia and Malaysia offer important lessons for plural states.