Terrible traumas in Indonesian island (7)
I believe the answer is:
sumatra
'indonesian island' is the definition.
(I've seen this before)
'terrible traumas' is the wordplay.
'terrible' indicates anagramming the letters.
'traumas' with letters rearranged gives 'SUMATRA'.
'in' is the link.
(Other definitions for sumatra that I've seen before include "Second largest Indonesian island" , "A US mart on an Indonesian island?" , "Large Indonesian island" , "part of Indonesia" , "Island in western Indonesia" .)