Mount Sinabung Eruption: Impact on Local Economy and Smallholder Farming in KaroRegency, North Sumatra

Abstract

Indonesia is a disaster prone country. One of the geo physical disaster is the prolonged of Mount Sinabung Eruption in Karo Regency, North Sumatra. This area is famous for horticultural (vegetable and fruit) producer in the region. The eruption has displaced people, destroyed infrastructure and livelihood. This research aims: (i) to investigate the magnitude of the economic losses, (ii) to find out impact on agricultural production and (iii) to investigate the adaptation pattern undertaken by farmers. The results of research showed that (i) the extent of losses on the regional level is bigger than the annual local government budget, whereas the feasibility of farm business deteriorated significantly, (iii) the disaster has jeopardized village self help organization, worsened access to farm credit as well as caused labour shortage in agriculture. Based on empirical finding, recommendation for the rehabilitation and mitigation is proposed.