MONOPOLY POWER?

PUTUSAN PERKARA KPPU NO. 9/KPPU-L/2016

WHO DID MONOPOLY POWER?

PT. Perusahaan Gas Negara (Persero), Tbk
violated UU No.17 Tahun 1999 Article 17
about Prohibition Mononopoly Practices &
Unfair Business Competition

WHAT DID THEY DO?

PT. PGN charged the higher price
$10 $13,9 ($13,9) than market price ($10)
for gas in North Sumatera
(August - November, 2015)

WHY DID THEY DO?

Gas didn't have substitute in North
Sumatera
PT. PGN was the only one who
distribute gas in North Sumatera

WHAT'S IMPACT FOR CONSUMER?

They were forced to buy because:
Gas is daily needs 
They didn't have choice
Consumer loss in market was Rp 11,9 billion

WHAT PENALTY IS GIVEN FOR

PT PGN?
They had to pay Rp 9,9 Billion for
consumer loss

GROUP 7 MICRO - C
Qonitah Mutia R. - 1806134493 Iqbal Kurniawan S. - 1806217275
 WHAT'S IMPACT
IN ECONOMICS?
PUTUSAN PERKARA KPPU NO. 9/KPPU-L/2016
GAS DIDN'T HAVE SUBSTITUTE
PRODUCT
The elasticity demand of gas is inelastic.
So, when the price is increased, in the
short run consumer still buys gas from PT
PGN because gas didn't have substitute.

PRICE WITH MONOPOLY

POWER CS
When PT. PGN set the price with $ 13,9

monopoly power which is price is $ 10

PS
higher than market price, consumer
will lose their suplus
*CS = Consumer Surplus < PS = Produser Surplus

LOSS OF CONSUMER SURPLUS

Because the price is higher than market
price, consumer will lose their surplus
(Rp11,9 Billion). This surplus will be the
excessive profit for PT. PGN
(producer surplus)
Consumer PT. PGN
Surplus Surplus

FACTORS OF PRICE MAKER .16 3.7

8
$9
Because the higher price of distibution, $ 1

PT. Pertagas Niaga, as a competitor of PT. PGN,

didn't want to distibute gas to North Sumatera ($
13.78).
It makes PT.PGN became a monopoly and charge
the higher price (from S 9.16 to $ 13.9) PT. PGN PT. Pertagas Niaga

RESULT & CONCLUSION

According from the analytical evidence above, it is proven that PT. PGN did a
monopoly practices by increasing price unilaterally which resulted the loss of
consumer surplus from Rp. 11,774,800,300 or at leash Rp. 7,594,588,900.

GROUP 7 MICRO - C
Qonitah Mutia R. - 1806134493 Iqbal Kurniawan S. - 1806217275