Changes in Lifestyle and Economic Behavior of Communities After the Semeru Volcanic Eruption: Promoting Economic Resilience and Environmental Sustainability in Permanent Settlements

¹ Department of Accounting, Faculty of Economics and Business, Universitas Negeri Malang, Indonesia
² Department of Public Health Science, Faculty of Sports Science, Universitas Negeri Malang, Indonesia
³ Department of Biology, Faculty of Mathematics and Science, Universitas Negeri Malang, Indonesia
⁴ Global Health at School of Medicine, Griffith University, Queensland, Australia
⁵ Department of Development Economics, Faculty of Economics and Business, Universitas Negeri Malang, Indonesia

^* Corresponding author: tomyrizky.Izzalqurny.fe@um.ac.id

Abstract

This study aims to explore the changes in lifestyle and economic behavior of communities affected by the Semeru volcanic eruption, following their relocation from disaster-prone areas to Permanent Settlements (Huntap). The primary focus of the research is to examine how financial literacy, retirement planning, financial management, risk tolerance, and social support contribute to fostering behavioral changes that promote economic resilience and environmental sustainability. Using a qualitative approach, the study involves in-depth interviews with the Lumajang and East Java Regional Disaster Management Agencies (BPBD), the head of the Huntap neighborhood, local community leaders, and the distribution of questionnaires to gather descriptive statistical data on economic and environmental behavioral changes. The findings indicate that the transition to permanent settlements has led to significant changes in financial management practices and lifestyle. Improved financial literacy, a better understanding of retirement planning, and enhanced social support have encouraged the adoption of more sustainable economic practices. Additionally, there is an observable shift in resource management and the application of sustainability principles in the new settlement environment. The study recommends strengthening financial literacy programs based on sustainability and developing social support models that promote environmentally friendly lifestyle changes in Huntap areas.