Nama : Ilham Nur Muhammad Akbar

NIM : 047949649

Please choose one of the questions below. Then, write an essay consisting of 3 paragraphs.
Elaborate your own opinion with the referees related to the question that you choose.

1. Discuss the impact of monopsony-like conditions created by online marketplaces on small

and medium-sized enterprises (SMEs) in Indonesia. In your essay, explain how the
concentration of buyer power in platforms such as Tokopedia and Shopee can affect the pricing,
competitiveness, and growth prospects of SMEs. Provide examples to support your arguments.

2. Analyze the effects of monopsony-like conditions in the Indonesian agricultural sector,

particularly focusing on the relationship between large supermarket chains and small-scale
farmers. In your essay, discuss how the dominance of a few large buyers can influence the
pricing of agricultural products, the income stability of farmers, and the overall sustainability of
the agricultural sector. Use specific examples to illustrate your points.

Answer :

I choose The Impact of Monopsony-like Conditions Created by Online Marketplaces on SMEs in

Indonesia

In recent years, the rise of online marketplaces such as Tokopedia and Shopee has reshaped the
retail landscape in Indonesia, creating monopsony-like conditions that significantly impact small
and medium-sized enterprises (SMEs). These platforms, by concentrating buyer power, wield
substantial influence over pricing, competitiveness, and the growth prospects of SMEs. The
significant market share held by these e-commerce giants means they can dictate terms that
are often unfavorable to smaller sellers. For instance, high commission fees and strict return
policies can erode the already thin profit margins of SMEs, making it difficult for them to
compete effectively. Additionally, the competitive pricing pressures exerted by these platforms
often force SMEs to lower their prices to unsustainable levels, further squeezing their
profitability.

Moreover, the dominance of platforms like Tokopedia and Shopee affects the competitiveness
of SMEs by creating a highly competitive environment where visibility and market presence are
crucial for success. These marketplaces often prioritize sellers who can afford to spend more on
advertising and promotions, disadvantaging smaller businesses with limited marketing budgets.
As a result, SMEs struggle to gain the visibility needed to attract customers, leading to reduced
sales and slower growth. The algorithm-driven nature of these platforms also means that sellers
must continuously adapt to changing rules and trends, which can be resource-intensive for
SMEs lacking in-house technical expertise. For example, many small businesses find it
challenging to keep up with the constantly evolving SEO and digital marketing strategies
required to stay relevant on these platforms.

Despite these challenges, there are also growth opportunities for SMEs within these
marketplaces. The vast customer base of Tokopedia and Shopee provides SMEs with access to a
wider audience that would be difficult to reach through traditional retail channels. However, to
capitalize on these opportunities, SMEs must navigate the complex dynamics of these platforms
strategically. This includes leveraging data analytics to understand consumer behavior,
optimizing their product listings, and building strong brand identities to differentiate
themselves from competitors. For instance, successful SMEs often invest in high-quality product
images, detailed descriptions, and customer reviews to enhance their online presence. While
the concentration of buyer power in these online marketplaces presents significant challenges,
it also offers SMEs a pathway to scale their businesses if they can effectively manage the
associated risks and costs.