Muhammadiyah was established on 8 Dhul-Hijjah 1330 AH or November 18, 1912, in Kauman, Yogyakarta. The Muhammadiyah establishment can be traced back to the establishment of Madrasah Ibtidaiyah Diniyah Islamiyah, a primary school founded by Dahlan’s house, on December 1, 1911. The initial learning and teaching process took place in a living room at Dahlan’s house, which measured just 6 meters by 2.5 meters and was equipped with three tables, three long chairs, and one whiteboard. Initially, the school had eight students.

Ahmad Dahlan founded the Madrasah Ibtidaiyah Diniyah Islamiyah without any external financial assistance or donations. He relied solely on his own resources to realize his vision of a modern Islamic educational institution.

Over time, through discussions with his students and colleagues from the Kweek School Jetis, Ahmad Dahlan was encouraged to form an organization that would ensure the sustainability of the Madrasah Ibtidaiyah Diniyah Islamiyah. This organization was named Muhammadiyah, with the hope that its members would emulate the teachings and exemplary life of Prophet Muhammad peace be upon him (PBUH).

While the idea and proposal to establish Muhammadiyah were widely supported by many of his students, prevailing regulations dictated that only those who had reached the legal age could be officially listed as founders. The Statuten, or the Statute of Muhammadiyah, submitted to the Dutch East Indies government, stated that the organization’s founding date was November 18, 1912.

After a lengthy and arduous application process, Muhammadiyah was finally recognized as a legal entity by the Dutch East Indies government with the issuance of Besluit (Decree) Number 81 on August 22, 1914.

In its early years, the organization’s activities were restricted by the regulations imposed by the Dutch East Indies government. However, during the Boedi Oetomo Congress held at Ahmad Dahlan’s residence in 1917, the founder of Muhammadiyah expressed his vision for the organization to expand beyond Yogyakarta, encompassing the entire island of Java and eventually reaching Sumatra, Sulawesi, Kalimantan, and other regions across Indonesia.

Upon receiving approval from the Dutch East Indies government, Ahmad Dahlan embarked on a mission to broaden the organization’s reach and spread its da’wa mission. He traveled extensively, delivering lectures, and urging Muslims to embrace Islam that liberated its adherents from stagnation as well as ignorance and emphasized righteous deeds.

Ahmad Dahlan led Muhammadiyah from its establishment in 1912 to his passing in 1923. Following his demise, the organization’s leadership was passed on to Kyai Haji Ibrahim, who served from 1923 to 1931. Subsequent leaders included Kyai Haji Hisyam (1931-1936), Kyai Haji Mas Mansyur (1936-1942), and Ki Bagus Hadikusumo (1942-1953).