DISKUSI 6

Monopoly is a situation in which a single company or group owns all or nearly all of the market for a
given type of product or service.

Why does PT PLN do the monopoly?

That is because of the law of government. Article 51 of law Number 5 of 1999 states,said "monopolies
and/or concentration of activities related to the production and/or marketing of goods and/or service
that affect the livelihood of the public as well as branches of production that are important to the state
shall be regulated by law and administered by state-owned enterprises and/or bodies, or institutions
which formed or appointed by the government."

In my opinion PT PLN does monopoly because electricity is the important thing in human life and all
people needs it. In many cases, government-created monopolies are intended to result in economies of
scale that benefit consumers by keeping costs down.

If the government doesn't monopoly in utility companies that provide water, natural gas, or electricity
are all examples of entities designed to benefit from economies of scale, it’s can creat a monopoly not
controlled by the goverment which will damage the economy.

And we can conclude, PT PLN do monopoly is to provide flexibility for the government to guarantee the
adequacy or electrical energy without burdening the community and monopoly is not bad if goverment
doesnt’t violate applicable law.