NAMA : NUR ANISA RAMADANI

NIM : 043713532
UPJJ BATAM
MANAJAMEN

Monopoly is a situation in which a person or group of people exercises control over a certain field
of activity absolutely without giving other people the opportunity to take part by monopolizing a field, in
this case the oil and gas industry where monopoly is a power to determine not only price, but also the
quality of an activity or product offered to the public.
According to the Black Law Dictionary
Monopoly is a priviledge or peculiar advantage vested in one or more persons or companies,
consisting in the exclusive rights ( or power ) to carry on a particular business or trade, manufacture
of particular article, or control the sale of the whole supply of a particular commodity. A form of
market structure in which one or only a few firms dominate the total sales of a product or services.
Natural monopoly is one result where one fim of efficient size can produced all or more than market
can take as remunerative prices.

PLN currently dominates and monopolizes electricity in Indonesia. However, its existence is not
even able to serve the people who use electricity, while direct involvement of the private sector in the
electricity business (become a competitor to PLN) is difficult because there is a precedent for the
Constitutional Court (MK) decision No. 001-021-022/PUU-I/2003 which states that Law no. 20 of 2002
concerning Electricity does not have binding force.
UU no. 20 of 2002 concerning Electricity has significant differences from Law no. 15 of 1985
concerning the old Electricity. In Law No. 20 of 2002 it is explained that all business actors are given
wider opportunities to be able to enter into the electricity supply business. Apart from that, what is quite
different is that this law has regulated matters related to the application of competition in certain areas.
In fact, through Law no. 20 of 2002 will allow the involvement of the private sector to become
business actors who provide electricity in Indonesia. The study of the Constitutional Court's decision is
interesting because it indirectly supports PLN in monopolizing electricity in Indonesia even though
predictively in 2003 it had been described that there would be a power crisis due to PLN's insufficient
ability to guarantee electricity supply throughout Indonesia.
The objectives of the formation of laws regarding the prohibition of monopolistic practices are:
a. Maintaining the public interest and increasing the efficiency of the national economy as one of
the efforts to improve people's welfare
b. Realizing a conducive business climate through fair business competition so as to ensure certainty
of equal opportunities for large business actors, preventing business actors, and small business
actors
c. The creation of effectiveness and efficiency in business activities
Electricity in Indonesia is a formation of history, geographical conditions, and the availability of
natural resources from ancient times. In its journey, the government has always taken a perfect role in
providing electricity to the people based on Article 33 of the 1945 Constitution. Even though during the
Dutch Colonial government and after independence there were commercial private companies that
produced electricity, the national government took a role in the development of this sector during last 50
years.
The State Electricity Company, founded in 1950, has become a key player in the rapid development
of the electricity sector. Statistical data shows that PLN is one of the largest electricity companies in the
world with a total of 22 million customers and more than 50,000 employees and almost all sections of
society are stakeholders for PLN.
PLN was established based on Law no. 15 of 1985 concerning Electricity and in 2002 Law No. 15 of
1985 was declared invalid by Law no. 20 of 2002. However, later through the Constitutional Court
Decision No. 001-021-022/PUU-I/2003 which was read out on Wednesday December 15 2004 stated that
Law no. 20 of 2002 does not have binding legal force.
The core problem of the issue of Law no. 20 of 2002 is in Articles 16, 17 and 68 which animate the
electricity law. Article 16 states that the electricity supply business is carried out separately by different
Business Entities. Article 17 states that the electricity generation business is carried out based on
competition and is prohibited from dominating the market.
However, the desired competition in order to achieve a healthy business climate cannot be carried out
in the electricity sector. This is because segments that are natural monopolies are not competitive and are
prioritized to be managed by BUMN.
Basically the business of supplying electricity is carried out in a monopoly manner, the selling price
is also still carried out by the Central Government or Regional Government based on the authority to
issue the permit. However, the electricity supply business can also be carried out in an integrated manner
or only in one type of business.