The culture of Ngayogyakarta Hadiningrat Sultanate came from a harmonization of traditions, belief, art, view of life, and education. The architecture of the royal palace, for instance, was influenced by the concept of Raja Gung Binathara (a great king that is honored like a god), which was the people’s view of life and part of the system of belief (i.e. worship to god).
Moral values were also spread using cultural means. Puppet stories in either wayang kulit (leather puppet) or wayang orang (human puppet), contained philosophies of life, of power, and of traditions. Besides, tembang (sung poetry) or gendhing (melody of gamelan) as another form of culture were often used to communicate knowledge and give counsels.
Language also played an important role in the society, i.e. as rank identifier. One had to use a language based on the social ranks. Javanese language is hierarchic, consisting of Ngoko (low Javanese), Krama Andhap (middle Javanese), and Krama Inggil (high Javanese). The prevailing regulation concerning this matter is very complicated. However, there is an important thing to note, that behind the linguistic hierarchy there is a culture of honoring and respecting each other. Apart from the three kinds of Javanese, there is another language that is used only in the Royal Palace. It is called Bagongan language, which in nature reflects an egalitarian view of the users.
Islam has become the official religion (state religion) of Ngayogyakarta Hadiningrat Sultanate since its foundation in 1756. Sultan holds the highest authority in religious sector, bearing the title Sayidin Panatagama Khalifatullah. Although it only recognizes Islam as the official religion, many people in the sultanate practice Javanese traditional belief (Kejawen). These people confess to be Muslims, but they also perform Kejawen rites. In practice, prayers in the rituals are said in Arabic. In this case, it is obvious that there is a syncretism of native Javanese culture (Kejawen) and late coming Arabic culture (Islam).
In the past, the economy of Ngayogyakarta Hadiningrat Sultanate relied on land cultivation, hardwood forest, agricultural estate, tax, and land rent—a kind of agrarian system. Sultan possessed all the land in Ngayogyakarta Hadiningrat Sultanate. Besides, the sultanate also received a big income from big scale hardwood productions started since the reign of Sultan HB I. As in the agricultural sector, the sultanate earned financial gain mainly from its production of coffee, sugarcane, tobacco, and parrot fishes. Most estates were handled by foreign private companies. The number of estates, which in 1839 figured up to 20, reached a total of 53 by 1880 following the growth and development of economy, land rent system, and infrastructure.
When the Japanese set foot in Yogyakarta, Sultan HB IX manipulated the reports of the productions of rice, cattle, and other products to protect his people from Japanese oppression. The sultan also commanded the people to build an irrigation canal (presently known as Selokan Mataram) to prevent them from being sent to other places as romusha (forced labors) by the Japanese.