I live in Indonesia and two people I have played chess with here use this opening. One, uses the a and h pawn two squares forward while the other used the b and g pawns in the same fashion.  I didn't allow it because I have never heard about this opening before anywhere.  Is this a real opening?

if so, i have never heard anything about it. If this happened to me ( especially in two different ways), I would at least ask him what it was called. But I think you handled it well

No, not by standard chess rules it isn't. You can only move I piece per turn unless you are castling.

They can play 1.a4 2.h4 or 1.b4 2.g4 but they certainly can't play 1.a4/h4 or 1.b4/g4. They have to use two moves if they want to move two pawns!

There are places that play chess variants, of course. For example: "The Game at Chess as now played at Stroebeck, differs from that commonly played in the following particulars: The pieces being placed as usual, each party is obliged to play his king's rook's pawn, queen's rook's pawn, and queen's pawn two squares, and the queen to her third square."

http://blog.chess.com/batgirl/the-chess-village--journey-to-strbeck

For what it's worth, related to this subject.... when I learned chess from my grandfather (he was from Hungary) when I was 7-years-old (30 years ago), we used to initially play with something like 1.e4/d3 and I would respond with 1...e5/d6.

I recall the reason at the time as something instructive in a weird kind of way. Never really thought about it... 

hmmm...

bit.ly/fqGw0c

^^ bravo