The history of the Faculty of Economics, Yogyakarta State University (FE YSU) cannot be separated from the history of Yogyakarta State University, which was formerly Yogyakarta Institute of Teacher Education and Educational Sciences (IKIP) in Yogyakarta. IKIP Yogyakarta as one of Teacher Training Institutions (LPTK) was founded on May 22, 1963 by the Decree of the Minister of Higher Education and Science (PTIP) No.55of1963.One of the faculties is the Teaching Faculty of Social Sciences (FKPS) which was inaugurated by minister PTIP May 21, 1964. This decision was confirmed by Presidential Decree No.268of 1965, 14 September 1965.
In order to strengthen the function of teacher training in the field of Social Sciences, Rector of IKIP Yogyakarta issued decree No.05/1965 which converted FKPS into the Teaching Faculty of Social Sciences (FKIS). To emphasize its educational characteristics, under Presidential Decree No.54/1982 on September 7,1982 in the Organizational Structure of IKIP Yogyakarta, FKIS transformed into the Faculty of Education of Social Sciences (FPIPS).
In harmony with the development of science, technology and arts and the industrial demands, IKIP Yogyakarta was converted into Yogyakarta State University (UNY) under Presidential Decree No.93/1999, August 4, 1999. This was followed by the change of name of FPIPS into Faculty of Social Science (FIS), which was approved based on Decree of the Minister of Education and Culture No.274/0/1999 on Organization and Work Procedure of UNY. Bearing the new name, FIS is authorized in holding education study programs as well as non-education ones.
Development efforts were continuously executed to meet the demands of society. Therefore, based on the Regulation of the Minister of National Education of Indonesia Number 12/2006 on the Amendment of the Decree of the Minister of Education and Culture No.274/O/1999 on the Organization and Work Procedure of Yogyakarta State University, FIS transformed into the Faculty of Social Sciences and Economics (FISE).
In order to meet the demands of industrial world, the FISE was splitted into two faculties: the FIS and FE based National Education Minister Regulation No.23 Year 2011 on the Organization and Work Procedure UNY on June 22, 2011. Thus, June 22, 2011 was set as the date of birth of the Faculty of Economics Yogyakarta State University.