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Yogyakarta was founded in 1755 and was the capital of Mataram kingdom when the Dutch came along. The Dutch granted the kings by title Sultan of Yogyakarta territory. Yogyakarta was also the scene of Indonesia's most successful rebellions against the Dutch - firstly with Prince Diponegoro who waged a holy war against colonial rule from 1825 to 1830, and also serving as the capital of the newly independent republic after World War II when the Dutch reoccupied Batavia (Jakarta).

http://www.indonesia-tourism.com/yogyakarta/history.html