TUGAS 3

Bahasa Inggris Niaga /ADBI4201

Priskila Michelle Barbier

053221207

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:
Topic 1
Monopsony is a condition where there is one buyer who has a large or dominant influence
in the market, which can influence prices and market conditions. In the context of online
marketplaces such as Tokopedia and Shopee in Indonesia, monopsony can occur when
these platforms have significant power in purchasing or determining trading terms for
SMEs. The concentration of buyer power in online marketplace platforms may cause SMEs
to face pressure to lower prices. Platforms like Tokopedia and Shopee, with large numbers
of users, can demand lower prices from SME sellers because they have access to a wide
market.
Monopsony can narrow the competitiveness of SMEs. With only one or a few large buyers,
SMEs may be forced to adhere to the platform's terms, which may involve lowering prices
or increasing product quality without fair compensation. Monopsony conditions can hinder
the growth of SMEs. Reliance on monopsony online marketplace platforms can limit SMEs'
ability to set profitable prices and develop effective marketing strategies. For example, an
online marketplace platform may offer a major promotion that requires SMEs to lower the
prices of their products. If SMEs don't follow suit, they may miss out on significant
consumer access available through the platform.
The conclusion is that the monopsony conditions created by online market platforms such
as Tokopedia and Shopee can have a significant impact on prices, competitiveness and
growth prospects for SMEs in Indonesia. SMEs need to consider sales and marketing
diversification strategies to reduce dependence on one or a few dominant buyer platforms.
Of course, cooperation between the Government, e-commerce practitioners, business
actors and community support is needed to provide a solution to these obstacles. In
particular, the Government as a regulator, facilitator and accelerator plays an important role
in providing a strong legal basis regarding equal treatment between offline and online
business actors, strengthening and empowering local products and local business actors
including SMEs, and also regarding consumer protection. It is hoped that e-commerce can
encourage the progress of SMEs in Indonesia in order to increase Indonesia's economic
growth.

Source:
1. https://bppk.kemenkeu.go.id/pusdiklat-keuangan-umum/berita/e-commerce-
untuk-umkm-dan-pertumbuhan-ekonomi-indonesia-237095
2. https://www.paper.id/blog/bisnis/pasar-persaingan-sempurna/
3. https://www.marketeers.com/mengupas-arti-monopsoni-dan-praktiknya-di-
indonesia/
4. Buku Bahasa Inggris Niaga Edisi 2 Modul 5 (ADBI4201)