Tugas ini Disusun guna Memenuhi Tugas Mata Kuliah
Tutor Pembimbing : " Ermina Tollang, S.Hum., M.Li 02004517"
DISUSUN OLEH:
ADELLIA ANGGRAINI
053347577
PROGRAM STUDI S1 ILMU ADMINISTRASI BISNIS
FAKULTAS HUKUM, ILMU SOSIAL, DAN ILMU POLITIK
UNIVERSITAS TERBUKA
UPBJJ-UT JAKARTA 2023 GENAP
Assalamualaikum Wr . Wb.
Saya Adellia Anggraini 053347577 izin menjawab pertanyaan tugas 3 mata kuliah B. Inggris Niaga.
Jawab
I choose topic number 2
The Impact of Monopsony-Like Conditions in the Indonesian Agricultural Sector
The dominance of a few large buyers, such as supermarket chains, in the Indonesian agricultural sector can
have significant effects on small-scale farmers. One of the most notable impacts is on pricing. When large
buyers have substantial market power, they can dictate lower prices for agricultural products, squeezing the
profit margins of small-scale farmers. This can lead to income instability for farmers, making it challenging
for them to invest in their farms or improve their livelihoods. For example, in Indonesia, large supermarket
chains have been known to impose low purchase prices on farmers for their produce, leading to financial
strain and limited resources for the farmers.
Furthermore, the influence of monopsony-like conditions on the agricultural sector can also affect the overall
sustainability of the industry. When small-scale farmers are consistently offered low prices for their products,
they may struggle to maintain their farms and invest in sustainable agricultural practices. This can lead to
environmental degradation and reduced productivity in the long run. For instance, the pressure to meet the
demands of large buyers at low prices may drive farmers to use unsustainable farming methods, such as
excessive pesticide or fertilizer use, which can harm the environment and compromise the long-term viability
of the agricultural sector.
In conclusion, the monopsony-like conditions created by the dominance of large buyers in the Indonesian
agricultural sector can have detrimental effects on small-scale farmers, including reduced income stability and
potential harm to the sustainability of the industry. It is crucial for policymakers and industry stakeholders to
address these imbalances in buyer power to ensure fair pricing, support the livelihoods of small-scale farmers,
and promote sustainable agricultural practices in Indonesia.
References:
Roger D. Blair and Jeffrey L. Harrison (2012). Monopsony in action: Agricultural Markets. Cambridge
University Press, 5 june 2012.
https://www.oecd-ilibrary.org/sites/f4c4ccfb-en/index.html?itemId=/content/component/f4c4ccfb-en
https://en.wikipedia.org/wiki/Agriculture_in_Indonesia
