Climate Risk, Poverty Trap: Linking Climate Disasters and Inequality in Indonesia

Abstract

This paper investigates the relationship between climate risks and poverty traps in Indonesia, focusing on how climate-induced disasters exacerbate existing inequalities and contribute to a vicious cycle of poverty. As climate change leads to more frequent and severe environmental shocks, the most vulnerable populations—particularly those in rural and coastal regions—face disproportionate socio-economic impacts. Utilizing a mixed-methods approach, this study analyzes quantitative data on disaster frequency, poverty levels, and economic vulnerability, while incorporating qualitative insights from interviews with affected communities. The findings reveal that climate disasters significantly increase the economic burden on already impoverished groups, undermining their livelihoods, limiting access to resources, and obstructing upward mobility. Moreover, these events heighten inequality by disproportionately affecting those without the means to recover, thus reinforcing the poverty trap. The paper also examines the role of insufficient policy responses, lack of infrastructure resilience, and the limited capacity of local governments in addressing the long-term socio-economic impacts of climate change. This research contributes to the understanding of how climate change interacts with existing socio-economic disparities in Indonesia, offering a new perspective on the poverty-disaster nexus. The urgency of these findings emphasizes the need for adaptive policies that integrate both climate resilience and social protection measures to break the cycle of vulnerability. This study is crucial for informing climate policy, development strategies, and disaster management frameworks aimed at mitigating the compounded effects of climate change and inequality.