Several countries nowadays apply the federal state system. The concept of federal state (federal polity) is often considered as the antonym for the concept of unitary state (unitary polity), whereas both concepts have the same essence. The essence is a balance between people’s rights and obligations to live more prosperously. Meanwhile, Indonesia has very diverse languages, ethnic groups, traditions, and cultures. Thus, a discussion on federal state is very interesting for Indonesians. The discussion becomes more interesting, because in spite of the diversity makes Indonesia move forward (generating onward); it causes Indonesia to be down-graded (decreasing down). Therefore, the cultural diversity, the capacity for socio-economic development, and the general standard of equality among citizens become undeveloped.