This paper aims at examining how the issue of disasters in Indonesia can be modified into a positive social capital to solve social, economic, political and social cultural problems in disaster prone areas. The natural geographic and physical setting of Indonesia located between the Indian Ocean, South China Sea, and Pacific Ocean places the country at the center of typhoon, tectonic and volcanic belts. It has significant levels of exposure to earthquakes, tsunamis, volcanic eruptions, droughts, floods, and cyclones. Some of the latest and most destructive natural disasters were that the earthquake followed by tsunami hit Aceh in 2004, earthquake hit Yogyakarta and Central Java in 2006, and volcanic eruption of Mount Merapi Yogyakarta and Central Java 2011. Data and analysis of this paper were conducted by distributing questionnaires, in-depth interviews, and focus group discussion with the local government bureaucracy and practitioners in Yogyakarta. This paper found that local government bureaucracy believed that disaster diplomacy can be utilized as a strategic means to increase cooperation between state, as well as social capital to solve certain problems in disaster-prone areas. Using Para diplomacy practices in term of disaster issues, local government bureaucracy and Indonesian government in general have abundance of possibility to improve cooperation and collaboration among states that can reduce the disasters’ material and immaterial losses, as well as intensify development of other potential cooperation in the wider issues.