In this article, we consider the recent increase in inequality in Indonesia. We make new, consistent estimates of expenditure inequality for 1993-2013, using several measures that draw on household expenditure data from the National Socioeconomic Survey (Susenas) for 1993-2013. In doing so, we note that the central statistics agency, Badan Pusat Statistik (BPS), used grouped data for its estimatesof inequality until 2009 and that this underestimated inequality up to then. Thus the rise in inequality reported since 2009 actually has a longer history. We argue that Indonesia experienced divergence and convergence at the same time: the magnitude of the rise in inequality was significant (divergence), but the rise was greatest in provinces or districts with low initial levels of inequality (convergence). We consider the literature on drivers of changes in inequality and identify a set of hypotheses, with an empirical basis, which we introduce as potential Indonesian-specific drivers of rising inequality for future exploration.

This paper examines how the perception on green environment can affect consumer behaviour. It tests whether consumer behaviour responds to environmental change. This study captures the interaction between green environment perception and behaviour. A neural network analysis is used to address this challenge to model such a behaviour. A total of 462 interviews were conducted and analysed using neural network process. A Scaled Conjugate Gradient with random data division was used in training and the performance was calculated using mean square error. The result reveals that perception–behaviour gap exists across generations on green environment. It indicates that perception on green producing, green living, green transport and green product is an important factor in determining the behaviour on green consumption. The neural network accurately recognized green behaviour up to nearly 82% with MSE = 0.09 at epoch 31, which is a high level of recognition accuracy. This study underlines the existence of perception–behaviour gap on green environment. However, these are only identified to people with low‐to‐medium level of green behaviours (level of correct only 44.5% and 30%). People with high level of green behaviour in fact show consistency between their perceptions and behaviours (level of correct 96.4%). This result shows that people tend to have higher perceptions on green environment, but their behaviour reflects otherwise.

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