Ethnically, the population of DIY province is mostly Javanese, a mixture of natives of Yogyakarta, and other Javanese from the Central and East Java regions.27 There are also minority populations of other Indonesians of Arab, Chinese and non-Javanese background, many of whom live in Yogyakarta as students. Among the values prized in Yogyakarta society are calmness and gentleness (Smithies 1986), peaceful manners (Tentrem) and social harmony (Rukun).28 These ideals are of primary importance in every aspect of individual life (Guinness 1986). The Javanese avoid open conflict and are tolerant and respectful to each other. Ewuh Pakewuh, or a differential attitude towards persons of higher status in the family and social order, is considered an important element in maintaining social harmony. The expression of feelings should be done in a proper way, with the appropriate choice of language and gesture.29 Social harmony is a vitally important ideal in their social lives and should be present in the nuclear family as well as in society as a whole.
In daily life, the Javanese express values of harmony in relationships among the members of family such as ‘seniority, mutual assistance and reciprocal obligation’
(Guinness 1986, p. 139) and ‘to place himself in another person’s situation (Tepa Salira) and mangan ora mangan nek ngumpul that people enjoy being close together with relatives more than they enjoy the food’ (Koentjaraningrat 1985, p. 475).
27 The Javanese have a rich and diverse culture, language, accent, script, art, music, customs and tradition, foods, dress and clothes, and household affairs. This diversity has been influenced by geography and history (Kuntjoroningrat 1985).
28 A detailed discourse regarding the multiple meanings of harmony (Rukun) in the perspective of the Javanese culture can be found inGuinness (1986). Rukun is an essential element of the Javanese community, and Indonesian in general, hence the term of Rukun literacy translated into the community administration structure such as Rukun Tetangga (RT) and Rukun Warga (RW).
29 The Javanese language includes different expressions and styles of speech that distinguish social status in three levels of language: informal, polite and extremely polite (Geertz 1960).
The ideal of social harmony is equally important in the wider society. Maintaining harmony among the neighbours and the broader community is the utmost socio-cultural ideal of the Javanese. Selosoemardjan (1962, p. 328) suggests it is ‘a strong society norm’ that wealthy Javanese should show a sense of philanthropy toward their less- fortunate relatives and fellows. Similarly, Koentjoroningrat states that there is an
‘obligation to maintain good relations with one’s close neighbours, pay attention to their needs and share with them as much as possible’ and ‘[T]rust in’ is the essential guidance as to how the Javanese collectively maintain their relationship (Koentjaraningrat 1985, p. 458–9).
In this respect, Guinness (1986) observes that the value of social harmony supports a sense of solidarity, cooperation and social bonding as well as egalitarianism. For example, among urban dwellers in Yogyakarta there is evidence that social harmony is a paramount value in bridging the differences:
Although many parents to whom I spoke were sad that their children had chosen to join another religion, all were proud that the different faiths were never a cause of conflict within the family. In general they admitted that religion was never or rarely discussed among family members, but were happy in the knowledge that their children’s faith, like theirs, was sincere (Guinness 1986, p. 135).
These socio-cultural values do not eliminate individual interests and differences, but these should be expressed in a proper manner, particularly when communicating with senior members of the family and people of higher rank in the community. These values of harmony and respect are expressed in ceremonies like the Slametan (Geertz 1960;
Jay 1969) and Islamic rituals such as Pengajian (Beatty 1999; Kim 1996), which reflect the communal spirit of togetherness and social status (Guinness 1986). The community mutual help organisation, Gotong Royong, and collective organisations or Paguyuban are long-established and practised in everyday life as well as in times of rehabilitation after natural disasters (Koentjaraningrat 1985).
In general, the Javanese culture and traditions are supportive of the concept of cooperatives based on community and common interest, cooperation and social harmony. In particular in Yogyakarta, people are familiar with different kinds of community-based organisations for shared economic and socio-religious purposes. The
community organisations tend not to distinguish between members on the basis of social status, ethnicity or religion. Consequently, the social and cultural backgrounds of the communities in Yogyakarta are favourable ground for cooperative microfinance including BMTs, which operate along similar lines as other types of microfinance programs.
In the region, all formal religions30 and local Javanese beliefs exist in the society.
However, statistically, Islam is the majority religion, with about 90 per cent of Yogyakarta’s population identifying themselves as Muslim. For an outsider, it is quite difficult to differentiate between ritual practices, cultural traditions, cults and pre- Islamic customs that have become intermingled with Muslim religious beliefs and practices in contemporary Yogyakarta society. Several studies and Javanese literature suggest that in the early period of Islamisation in Java, the teachings of monotheism religion were carried out through socio-cultural approaches and acculturation processes among the local and Muslim traders from India and the Middle East (Beatty 1999;
Headley 2004; Woodward 1989).
Islam first spread in Java in the era of Hindu–Buddhism kingdom and was embraced by people because the Islamic teachings and values were compatible with Javanese ancestral cults and mystical beliefs. The Javanese accept the practice of Sufism that is regarded as the source of supernatural power. Occultism and the mythology of the Sultan and the monarch’s symbols (Pusaka) is believed by many Javanese to have magical powers to protect against pernicious calamities and to bring a peaceful atmosphere to the communities (Selosoemardjan 1962). In addition, the socio-religious ritual of ‘Slametan’ (Geertz 1960; Jay 1969) evolved from the ancestral animism and Hindu–Buddhism and has been adopted by Javanese Muslims as a spiritual devotion although this ritual is not consistent with the Five Pillars of Islam.
Geertz identifies three typologies of the Javanese Muslims and how they embrace and practise the Islamic tenets in their spiritual devotions: Santri, Priyayi and Abangan. The Santri are pious believers often associated with Islamic boarding schools (Pesantren), Arab traders and middle class Muslims. Priyayi are Muslims who are associated with
30 The government acknowledges six religions: Islam, Protestantism, Catholicism, Hinduism, Buddhism and Khonghucu.
the Sultans’ courts including government officials. The Abangan include many villagers and lower class inhabitants of urban societies (Geertz 1960). However, Geertz’s definition has been the subject of much debate among Javanese anthropologists, particularly in defining the Priyayi in the Islamic context (Beatty 1999; Kim 1996;
Woodward 1989).
Another study classifies Islamic traditions in Yogyakarta into two main groups:
traditionalist and modernist (Kim 1996). The former belongs to the Javanese Islam tradition that retains the syncretic attributes and ancestral cults of Javanese beliefs. The latter is a revivalist form of Islam that interprets and practises the teachings in accordance to the Holy Qur’an and the Sunnah of the Prophet Muhammad. The renaissance of modernist Islam in the region was in 1912 when an Islamic scholar, K.H.Ahmad Dahlan, established Muhammadiyah in Yogyakarta city (Nakamura 1983).
Moreover, Alfian (1989) states that the organisation is not formally affiliated with a political party; rather it has socio-religious goals to promote Islamic values through a modern educational system and community-based missionaries (Dakwah), including the provision of health services. As the organisation introduces an alternative approach to practising Islam, Muhammadiyah attracts many Muslims from diverse backgrounds, especially intellectuals and middle-class entrepreneurs, hence Muhammadiyah is very supportive toward economic activities, although it is not formally directly involved in business ventures.31 In this respect, the modernists belief that religious teachings is not only related to ritual devotion but provides guidance in many aspects of life.
In summary, the modernist tradition is more supportive of economic activities whereas the traditionalists focus on ritual. The strength of the modernist tradition in Yogyakarta provides a supportive environment for BMTs as faith-based microfinance community- based institutions.
31 In the mid 1990s, some leaders of Muhammadiyah established a conventional commercial bank outside the structure of Muhammadiyah. The bank ultimately failed. Influential leaders and scholars of the Muhammadiyah were also involved in the establishment of Bank Muamalat Indonesia (BMI), the first Islamic bank and the BMTs (discussed in chapters 6, 7 and 8).