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The Disaster Preparedness Village (Kampung Siaga Bencana or KSB) in Special Region of Yogyakarta Province (DIY) is a community that aims to increase community preparedness and resilience to disasters through collaboration between the local government, non-government organisations and the community. This research examines the sustainability factors of KSB, namely the role of local leadership and government collaboration in disaster risk reduction (DRR) efforts. The method used in this research is a qualitative method and Strength, Weakness, Opportunity and Threat (SWOT) analysis, then using a diamond model to visualise the role of local leadership and the role of government. The results of this research show the importance of local leadership role in the sustainability of KSB. Factors contributing to the success of DIY KSB include independence, fulfillment of social granary logistics and effective two-way communication between KSB management and the village government (Kalurahan). The study supports that effective local leadership empowers the community, influences resource utilisation and facilitates collaborative efforts with the village government and volunteer organisations to address disaster management priorities. In addition, the most significant shortcomings in community leadership based on trust cultural value will negatively impact their sustainability and activeness if the local actors as mobilisers are inactive, and there is no regeneration of active new leaders. The Umbulharjo KSB case study exemplifies effective local leadership, mainly through Jagabaya, the chairman of KSB management. Strong local leadership is a fundamental element in developing a cohesive community actively involved in DRR efforts. Contribution: The study reveals that local leadership significantly contributes to the development and sustained activity of KSB. The research concludes by emphasising the multifaceted nature of local leadership, considering various perspectives and the community’s values and goals. The diamond model illustrates the intersection between societal opportunities and government support, demonstrating the realisation of goals through effective local leadership.

Indonesia situated within the volatile Ring of Fire, faces recurring and devastating earthquakes that pose significant economic threats. The Government of Indonesia (GoI) has initiated a disaster risk financing strategy to address these challenges. However, the implementation of disaster insurance within this strategy remains limited. This study examined the GoI’s disaster risk financing methods, assessed the effectiveness of existing disaster insurance practices, and proposed strategies for improving disaster risk reduction (DRR). Literature review was used to analyse disaster fund and insurance implementation. A building vulnerability simulation, based on Federal Emergency Management Agency’s (FEMA) P-154 rapid visual screening, determined the appropriate financing strategy. State buildings were assessed using nine vulnerability factors and categorised by seismicity. The research found that disaster financing mostly relied on national funds to cover all disaster damages. Existing disaster insurance lacked clarity in defining insurable buildings, resulting in broad inclusion. Vulnerability assessments showed that each building type exhibited different potential earthquake damage levels. Consequently, insurance coverage is recommended for high-damage categories but discouraged for low to moderately vulnerable buildings. Contribution: This study offered insights into Indonesia’s current disaster risk financing and insurance landscape, and provides a strategic framework for optimising these mechanisms to better protect state buildings from earthquake-related risks.