lOMoARcPSD|19119784

Nama : M. Rechi Herjuno

NIM : 043377859

1. PT PLN is one of the examples of company which monopolizes the market. What makes
PT PLN can monopolize the  market?

The provision of electricity has a very important and strategic role in realizing national
development, so that the supply of electricity is controlled by the state and its supply
must continue to be improved in line with development developments.

Thus, the availability of electricity in sufficient quantities, evenly and at an affordable

price will be achieved. Currently, the Government has enacted a new Law Number 30 of
2009 concerning Electricity which is the legal basis for the business of providing
electricity in Indonesia. The enactment of the new electricity law also gives a new color
to the electricity supply business in Indonesia. This is evidenced by the re-enactment of
the holder of the Electricity Business Authorization so that the position of PT PLN
(Persero) has changed, namely the granting of the first right of rejection to PT PLN
(Persero) as a form of state control over the supply of electricity. This makes the
position and role of the state in the national economy very dominant. The state's
authority in managing the industrial sector that affects the lives of many people is in the
context of implementing the provisions of the constitution. The electricity business
sector in Indonesia is included in the industry in the above definition. As long as the
electricity business sector is not opened in the competitive market, with the authority of
the state, no party outside PT PLN (Persero) will be harmed or in conflict with the
provisions of the business competition law.
PT PLN (Persero) as the only BUMN that manages the electricity sector based on Law
no. 30 of 2009 concerning Electricity, which stipulates that the business of providing
electricity is carried out by the state and carried out by a State-Owned Enterprise which
is established based on laws and regulations as the Holder of an Electricity Supply
Business License who has exclusive rights in this case is entitled to first priority for the
implementation electricity business. Three aspects are the basis for granting exclusive
rights to PT PLN (Persero) in the operation of electricity in Indonesia, namely the
juridical aspect, the sociological aspect, and the economic aspect. Monopoly is possible
under our law of competition, as long as its activities include or involve those branches
of production that are important to the state and affect the livelihoods of many people.
Referense Sources :  Mardiani, Siti Era. (2020). “BMP ADBI 4201 Business English
Module 5 Page 5.31 – 5.32”. Open University : South Tangerang.

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2. A monopsony is a market condition in which there is only one buyer. Why monopsony
is not good for labour market?

 Specific to the labor market, lower wages may sometimes mean that wages fall
below the productivity of workers. It may slow down the growth of the economy
and have detrimental effects on educational attainment.

The types of monopsony companies are:

a. monopsony with pure monitoring

A monopsony with pure guidance will hire people to the point where the wage value of
the last worker hired is equal to the cost of hiring that last worker. Or the condition
where the last worker's contribution to the company's revenue equals the worker's
marginal cost.

b. non-discriminatory monopsony company

A non-discriminatory monopsony company must pay all workers at the same rate,
regardless of workers' reservation wages. This is caused by a non-discriminatory
monopsony company having to increase wages for all workers because of the company's
desire to hire more workers so that the labor supply curve is no longer the marginal cost
of workers.

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