Papers in this report have been grouped into three. The first group attempts to trace the genealogy of the state and the historical legacy which may influence the formation of the modern state and the Indonesian State which was established in August 1945. The second part of this report concentrates upon these problems of social formation. Arief Budiman will begin this section with his theory about the relationship between social formation and mode of production. In the third section, focus is placed upon problems of transnationalization and its impacts, not only in shaping the position and role of the state, through class formation, but also the effects of transnationalization upon political, economic, and cultural life.