Nama : Billy Hermawan

NIM : 048615115

A monopoly market is a type of market with imperfect competition. In a monopoly market,

typically only one producer has the ability to set the price of his product.

As quoted from The Economic Times, in a monopoly market, factors such as government
licenses, resource ownership, copyrights, and patents, as well as high initial costs, make an entity
the sole seller of goods.

In other words, all these factors limit the entry of other sellers into the market. The monopoly
market also has some information that other sellers don't know.

A characteristic associated with a monopoly market is that a single seller controls the market and
determines the price. The monopoly market enjoys the power to set prices for its goods.

Monopolies created by the government are intended to generate economies of scale that benefit
consumers by keeping costs low. For example, the monopoly conducted by PT. PLN

PLN is included in this type of pure monopoly. This is shown because PT. PLN is a single seller
or producer, has a product that is unique and without close substitutes, and has the ability to
apply whatever price they want. Other traders cannot enter the market.

The monopoly carried out by PT. PLN occurs naturally due to the business of providing
electricity, which is capital- and technology-intensive. In addition, the intense competition for
primary energy has made the electricity supply business more risky. The formation of the
monopoly is also due to the assignment of electricity supply given by the government to PT.
PLN.

The position of PT. PLN as a state-owned enterprise in the electricity sector after the enactment
of Law No. 30 of 2009 concerning electricity in terms of anti-monopoly laws and unfair business
competition as stipulated in Law No. 5 of 1999 concerning the Prohibition of Monopolistic
Practices and Unfair Business Competition The results of this study conclude that, based on the
two laws, PT. PLN does not practice monopolistic practices or unfair business competition. And
in order to protect the interests of the people's livelihood, as stipulated in Article 33 of the 1945
Constitution, the government continues to apply a public service obligation to PT. PLN.

The monopoly carried out by PT. PLN is a manifestation of the government's responsibility to
provide the best service and welfare for the whole community. and PT PLN has a monopoly on
electricity service so that it is not misused by BUMS.

Reference :

BMP Bahasa Inggris Niaga (ADBI 4201) Module 5 halaman : 5.31-5.32

https://lib.ui.ac.id/detail?id=20238186