Indonesia

Mercy Corps has been working in Indonesia since 1999, helping people prepare for and recover from natural disasters and build better lives. In 2025, Mercy Corps reached over 127,000 people across the country. 
 

The context

Indonesia is the world's largest island nation and fourth most populous country, consisting of more than 17,000 islands and 285 million people. As an archipelago, it is particularly vulnerable to natural disasters such as flooding, high tides, and extreme weather events. These disasters are becoming more frequent and intense due to climate change, which is causing seasonal changes and rising sea levels. Indonesia is also prone to volcanic eruptions and earthquakes which can trigger tsunamis with little to no warning.

Indonesia ranked as the world’s second most disaster-prone country, according to the UN. In 2025, the country’s National Disaster Management Agency reported over 4,700 natural disasters. Earthquakes with a magnitude of 5.0 or lower occur almost daily across the country. Indonesia’s Meteorology, Climatology, and Geophysics Agency have recorded thousands of earthquakes annually.  Due to the frequency of earthquakes, Indonesia must remain in a constant state of preparedness. The infrastructure and economy also suffer ongoing impacts from its long history of major natural disasters.

Decades of rapid economic growth have greatly reduced poverty in Indonesia. Between 2000 and 2024, unemployment fell from 9% to 5%, according to the World Bank. Rising earnings from work accounted for 70% of the reduction in poverty, with the poverty rate dropping from 19% to 9% over the same period. However, many workers are stuck in low-skill, temporary, or irregular work. The people most affected live in urban areas and are employed in the informal sector, which is less stable and offers wages well below the minimum cost of living.

As of 2024, approximately 44% of the population do not have a bank account and can’t access formal financial services like loans, credit, and insurance. Without access to financial services, it is more challenging to start and grow a business, save for the future, manage risks, and adapt to change.

Our impact

Since 1999, Mercy Corps has partnered with local governments and communities to rebuild after disaster to support stability and economic growth. Our programs make an impact across these areas:

Delivering emergency support in the wake of natural disasters

Because Indonesia and the wider region are prone to natural disasters, we developed a dedicated team of expert emergency responders called the Indonesian Response Team (IRT). When a disaster strikes in Indonesia or the broader region, the IRT arrives within days to provide immediate lifesaving relief to communities during the critical first months by delivering essentials like food, water, shelter, and sanitation products.

When markets are open, we provide cash instead of physical goods to help stimulate the local economy and lay a foundation for long-term recovery efforts. The team has responded to over 30 disasters, including earthquakes, floods, landslides, and tsunamis since they were established in 2007.

Strengthening climate resilience and disaster preparedness

Mercy Corps partners with local governments and communities to implement early warning systems to help people better prepare for extreme weather. Our program supported the construction of a radio tower and provided communication equipment and evacuation training to the 17-member committee. Prior to the updated equipment, volunteers relied on bamboo gongs and word of mouth when power and phone networks failed.

We also provide smallholder farmers access to real-time information on local micro-weather so they can quickly adapt to rapidly changing weather. In a place where disaster is common, the support has strengthened the community’s ability to protect one another, and to act quickly when every minute counts.

In order to scale our efforts and ensure sustainability after our programs end, we help inform policy and planning at the local and national government level. Mercy Corps collaborates with Indonesia’s disaster response agency to increase their capacity at the national and local levels to better anticipate and respond to the needs after a disaster strikes. When communities have the knowledge and tools to better prepare for the next natural disaster, they will spend less time and effort recovering and getting back on their feet.

Increasing economic opportunities and access to financial services

Mercy Corps drives inclusive and sustainable economic growth for smallholder farmers and entrepreneurs, particularly women and youth. Our programs help small business owners build livelihoods through digital and financial literacy training. By collaborating with local governments, financial service providers, and the private sector, Mercy Corps is strengthening the broader ecosystem in which businesses can grow and thrive.

Mery Corps supports businesses in adopting digital tools for operations and marketing, expanding access to financial services—including digital finance and microinsurance to protect against shocks that disrupt business—and connecting entrepreneurs with experienced mentors.