Part II of this book covers the history of the Muhammadiyah movement in Kotagede for the period of approximately forty years since my first fieldwork, i.e., from 1972 to 2010. During the period 1972–98, General Soeharto ruled Indonesia with his strategy of pembangunan, i.e., economic development under military control with the aid of Western powers. During the period 1998–2010, Indonesia experienced years of turbulent political change, in which the dictatorship of General Soeharto fell before the widespread protests and the era of Reformasi (Reformation) was launched. In Part II, attention is focussed on the local scene of Kotagede against the background of developments at the national level.

Chapter 8 reviews social changes occurring over the forty year period in the town of Kotagede in terms of urbanization, diversification, and globalization. Then, in Chapter 9, the achievements of the Muhammadiyah during the same period are described and discussed. In the following Chapter 10, the internal dynamics of the Muhammadiyah, especially of the conflicts between generations, and the process of change in its leadership are examined. In Chapter 11, a number of challenges currently faced by the Muhammadiyah movement in the post-Reformasi situation are taken up. In Chapter 12, an interesting and important recent development in the town, i.e., the Festival Kotagede, is discussed in relation with the Muhammadiyah. Chapter 13 deals with the impact of the 2006 earthquake and the efforts for rescue, recovery and reconstruction undertaken by the Muhammadiyah and others.