Abstract
Transformative capacity (TC) accommodates the changes to specific system functions to resolve disaster governance challenges, such as the unmet conditions existing between disaster risk reduction (DRR) and preparedness. This study sought to identify which local economic-driven and livelihood initiatives could be alternatives to DRR and become transformative activities for the Merapi volcano community in Indonesia. Using a qualitative approach, primary and secondary data were analyzed using four TC elements, focusing on three main community-based economic driven (CBED) activities; the tourism village, lava tours, and campsite management; the Merapi community could apply the TC framework to enable both DRR and livelihood enhancement. Even though, the results of these achievements remain somewhat unclear, the study shows that TC could accommodate change and that there were interdependencies and multidimensional approaches between each element.