The City of Jogjakarta and the Kingdom of Jogjakarta was established as a result of a "Gianti war treaty" (Perjanjian Gianti) by HRH Prince Mangkubumi, who later become HRH Sultan Hamengkubuwono I. Officially, the creation of Kingdom of Jogjakarta is dated to October 7, 1756 as a result of civil war among the bloodline of The Kingdom of Mataram. The civil war was fought against Hamengkubuwono's and his elder brother, HRH Sunan Pakubuwono II. This civil war marked the end of the Kingdom of Mataram and resulted in the birth of the Kingdom of Jogjakarta and the Kingdom of Surakarta.
The root of the civil war started when Sunan Pakubuwono II agreed to cooperate with the Dutch colonial government and submit to foreign (western) powers. His younger brother, HRH Prince Mangkumbumi (HRH Sultan Hamengkubuwono) stood against the concept, due to concern that his people would become slaves under Dutch rule. The Javanese slaves were used to work for businesses owned by V.O.C. and the Dutch Colonial Government and exported to present day Suriname in South America. In the Netherlands itself, some of the Dutch people stood against the policy of their home government.
Prince Mangkubumi fought until the defeat of the Pakubuwono forces and declared sovereignty in the Kingdom of Jogjakarta south of the original Kingdom of Mataram. Because of this historical act of bravery and sacrifice, Jogjakarta is given Special Administrative Region (SAR) status, making the Province of Jogjakarta the only province headed by a monarchy.
Source: Wikipedia
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