Indonesia is a highly multilingual country which houses hundreds of local languages that must also be preserved. Concurrently, the rapid development of English as lingua franca challenges Indonesian language in shaping the nation’s identity. This study aims at investigating the current opportunities and challenges in English studies given the current Indonesian language planning and policy. This involves conducting library research upon several types of language policy namely status planning, corpus planning, language-in-education planning, prestige/image planning, and minority language rights. The questions answered through this study are, 1) How do language planning and policy implemented in Indonesia? 2) What are the opportunities and challenges for English studies? In the discussion, the types are covered under the context of Indonesia as a multilingual country. The result shows that multilingualism comes as the challenge as Indonesia is undergoing the process of maintaining its identity by deciding on its unifying ‘tool’ which is Indonesian language, while the prestige/image that English as lingua franca has may promote the learning for learners, hence serving as opportunity.