Twenty Years of Expenditure Inequality in Indonesia, 1993–2013

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 estimates of 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.     

How does perception on green environment across generations affect consumer behaviour? A neural network process

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.     

Improving the participation of smallholder mango farmers in modern retail channels in Indonesia

Demand for fresh fruits and vegetables in Indonesia has been continuously growing as the result of increasing incomes, high growth of the urban population, and modern retail development. The growth of modern retail chains in Indonesia in the last few decades has intrigued some development experts and practitioners because it had been expected to provide greater opportunities for linking small farmers to high value globalized market chains. The modern private sector would, it was hoped, incorporate small producers with the goal of both securing supply and contributing to poverty reduction. However, in terms of mangoes, previous studies have indicated that only a very small proportion of local production is marketed to modern retail chains and/or exported. The main objective of this study is to identify the factors affecting farmers' participation in modernizing retail channels. The study randomly selected 636 mango farmers from the two main mango production zones in Indonesia, West Java and East Java provinces. The study shows that an expansion of the modernized retail segment has not always benefitted local producers, especially smallholder farmers. It is demonstrated that smallholder farmer participation could be higher when the level of commercialization in the market is high and/or retail procurement was already more modernized. Factors that increase farmer capacity to participate in the modern retail chain are irrigation, farm tools, and infrastructure. To increase smallholder farmer participation, the study suggests a policy of encouraging enforcement of quality standards at wholesale markets, technical assistance to farmers relating to value-adding postharvest activities, and improvements in rural infrastructure.