INTRODUCTION
A.Background
Industrial economics is a branch of economics that has the subject of firm behavior in an industry and its impact on industry and consumers. The essence of Industrial Economy is a discussion of S-C-P in every existing market structure. In the economic market there are a variety of markets known, both of which are often seen in daily practice as well as those that are only known absolutely in theory. The types of markets that are generally widely practiced are monopolies, oligopolies and free competition markets. today, many of us do not know about the monopoly, oligopoly, and free competition markets. both from the understanding, the characteristics, even to the impact caused by the three markets. Actually the market activities, whether monopoly, oligopoly, or free competition itself, can be found in various countries that embrace the system. Of course the activities of the system chosen by the country itself also affect the economy of a country. Structure, behavior, and performance or so-called SCP (Structure Conduct Performance) are the three main pillars that can be used to see the condition of structure and competition in the industrial world . where this paper will discuss the Structural Conduct Performance of the Monopoly, oligopoly, and perfect competition industry players.
B.Rumusan Masalah
· How Structure Conduct Performance monopoly market in the industry of PT. KAI (Indonesian Train)?
· What is the oligopoly market structure structure in the telecommunications industry?
· How is the Structure Conduct Performance of the perfectly competitive market in the rice industry?
C.Tujuan dan Manfaat
· Can find out the Structure Conduct Performance of the monopoly market in the industry of PT. KAI (Indonesian Train).
· Can find out the oligopoly market structure structure performance in the telecommunications industry.
· Can find out the Structural Conduct Performance of the perfectly competitive market in the rice industry
DISCUSSION
Industrial economics is a branch of economics that has the subject of firm behavior in an industry and its impact on industry and consumers. The essence of Industrial Economy is a discussion of S-C-P in every existing market structure. In the economic market there are a variety of markets known, both of which are often seen in daily practice as well as those that are only known absolutely in theory. The types of markets that are generally widely practiced are monopolies, oligopolies and free competition markets. today, many of us do not know about the monopoly, oligopoly, and free competition markets. both from the understanding, the characteristics, even to the impact caused by the three markets. Actually the market activities, whether monopoly, oligopoly, or free competition itself, can be found in various countries that embrace the system. Of course the activities of the system chosen by the country itself also affect the economy of a country. Structure, behavior, and performance or so-called SCP (Structure Conduct Performance) are the three main pillars that can be used to see the condition of structure and competition in the industrial world . where this article will discuss the Structural Conduct Performance of the Monopoly, oligopoly, and perfect competition industry players.
A.Structure Conduct Performance monopoly market in the industry of PT. KAI
Monopoly is a market domination carried out by a person or company or entity to control market offerings (sale of products and or services on the market) aimed at its customers. An example of a monopoly case in Indonesia is in the railroad transportation sector, since it was founded in 1946, PT KAI has been the only industrial company engaged in the railroad transportation sector. PT KAI operates trains in the provinces of Aceh, North Sumatra, West Sumatra, South Sumatra and Lampung and all provinces in Java. PT KAI's plan will also operate trains in the Sulawesi region. PT KAI provides passenger and freight train services. Almost all lines that operate have regular passenger train transportation services.
- · Market Structure
This structure has been known since classical times. Monopolistic market structure is the most extreme form of market, the opposite of perfect competition. Monopoly is defined as a form of market organization where in the market there is only one seller who sells commodities that do not have perfect substitutions. Another important feature of the monopoly market is that there are no substitute goods for these goods and there are strong obstacles for other companies to enter the market. So it can be concluded that the market share is 100% owned by PT. KAI because it does not face competitors (there are no other railway management companies). PT Kereta Api Indonesia (Persero) is the only company (BUMN) that plays in rail transportation modes in Indonesia. But indirectly, PT. KAI will face competition from other land transportation services, such as inter-city buses and travel.
- · Company Behavior and Performance dan Kinerja Perusahaan
In order for PT KAI to be great, it implements budget efficiency and effectiveness. Meanwhile, in order to win the competition from the competitors, the target market, product positioning and market segment are determined. The goal of PT KAI is to make Train as a reliable and trusted transportation tool so that it becomes the main alternative for land transportation, especially in Java. The following strategies are implemented:
Ø Market penetration strategy
Maximizing ticketing services where KAI provides information in the form of ticket prices, departure schedules, reservations, and other information. And in collaboration with banks and PT POS Indonesia to expand the ticketing service network.
Ø Market development strategy
KAI is more focused on short-distance travel, refocusing railroad lines that were once stopped.
Ø Service development strategy
Improve facilities on the train such as toilets on the train; minimize service access by improving a reliable system on the online ticketing network; and in the field of facilities, efforts should be made to meet minimum service standards in all train classes.
Ø Joint Venture Strategy
Cooperating between several separate companies to finance an investment for the common good; Reska, the field of restoration, service on train, catering, restaurant, cafe and parking; Rallink with Angkasa II, namely the airport train; KAI Commuter; KAI tourism; KALOG; KA Property Management; PT Pilar Sinergi BUMN Indonesia.
Ø Other strategies
Optimizing asset utilization. For example the use of strategic land for property business, advertising, hotel construction, shops, offices around the train station.
In 2015 has been a year of service for PT KAI dedication to customers by continuing to innovate in providing excellent services and improve the credibility of HR. This is evidenced by the achievements that have been achieved at The 2015 Best Contact Center Indonesia Awards which have been attended by 32 Indonesian state-owned and private companies, where PT KAI participated in 18 categories and won 16 medals. As one of them, the transportation service company continues to improve and improve the quality of its services, KAI's service performance has been recognized.
Kereta Api Indinesia (KAI) not only contributed to the national railroad transportation but also gave a significant contribution to the country to the country through dividends and taxes paid during 2015 amounting to Rp 237,000 million and Rp 520,422 million, respectively. In addition, KAI has also created employment for 25,361 workers. Whereas with the environment, KAI plays a role in reducing congestion with the lack of pollution generated and encouraging the creation of safe, easy, and friendly transportation.
Financial highlight:
in 2015, the company's assets of Rp 22.39 trillion grew 29.34% compared to 2014 of Rp 17.31 trillion. The increase in assets was driven by an increase in current assets by 62.88% and non-current assets by 19.89%
Over the past five years KAI's profit has grown by 45% per year (CAGR). In 2010 the value of profit for the year attributable to the owners of the parent entity was recorded at Rp 216 billion and increased up to 5.4 times to Rp 1.4 trillion at the end of 2015.
The level of the Company's ability to meet its obligations that must be fulfilled immediately is indicated by the level of liquidity it has. In 2015, the liquidity ratio reflected in the current ratio was 110.67%. The highest score is for performance with a current ratio equal to or more than 125%. Overall the ratio of total lability to equity decreased from 115.56% in 2014 to 100.52% in 2015.
Total equity in 2015 amounted to Rp9.09 trillion, an increase of 60.63% compared to 2014 amounting to 5.66 trillion. This increase was mainly due to an increase in equity attributable to owners of 3.43 trillion, an increase of 61.73% from 2014, and an additional state capital investment in 2015 of Rp 2 trillion. So that the financial position of KAI in 2015 in 2015 can be concluded quite strong.
The oligopoly market is a form of imperfect competition, where there are only a few sellers or producers and there are many buyers in the market. The following are the market characteristics of oligopolies including;
ü There are several sellers and many buyers in the market.
ü The traded goods are relatively homogeneous but differentiable.
ü Sellers in oligopolies have the power to determine prices because there are differences in each product offered.
ü New companies can enter but there are obstacles in the form of large capital making it difficult to enter the market.
One example of the oligopoly market form is the telecommunications industry because in the market there are only a few sellers or producers and a very large number of buyers. Where the understanding of telecommunications itself is a form of technical delivery or delivery of information, from one place to another. In relation to 'telecommunications' forms of long distance communication.
- Market Structure
- Barrier to Entry in the Telecommunications Industry
Barrier to entry or barriers to entry is one indicator to see how the market structure in an industry. In the telecommunications industry there are several obstacles, namely:
1. To enter the telecommunications industry, the total fix cost is quite large, especially in making towers and satellite rentals. In addition, the telecommunications industry also has obstacles to get out of the market, namely the total sunk cost from making towers which is relatively large. Sunk costs are costs that have been incurred, so they cannot be changed by making decisions, both now and in the future.
2. The occurrence of mutual acquisitions between companies in the telecommunications industry. For example: The four subsidiaries of PT Smart Telecom Tbk which had been a part of PT Telekomunikasi Indonesia Tbk and PT Global Mediacom Tbk (formerly Bimantara Citra) which were merged with PT Mobile-8 Telecom Tbk and subsequently acquired by PT Smart Telecom Tbk became PT Smartfren Telecom Tbk; The acquisition of 95% of Axis Telekom Indonesia's shares by Exel Axiata; The acquisition of PT Sampoerna Telekomunikasi Indonesia by PT Bakrie Telecom Tbk.
3. The market share of several very large companies is an obstacle for new companies to enter the industry. New companies that want to enter must have the advantage to be able to compete with companies that have long entered and have a large market share.
- · Perilaku Perusahaan
1. Cooperation with competitors
Cooperation is a system of work that is done by two or more people to get the goals that are planned together. One form of cooperation is acquisition. Acquisition is a purchase of shares of a company by a company through the approval of the company's target shareholders. The acquisition took place in the telecommunications industry, namely mobile 8 (fren) in the acquisition of Smart telecom and changed its name to Smartfren in 2011, until Indonesian telecommunications was acquired by Bakrie Telecom Esia, and most recently in September, AXIS was acquired by XL Axiata. XL acquired 95% of Axis shares. Acquisition is almost the same as merger. So acquisitions that occur between telecommunications companies, including the type of horizontal merger, which is the merger of 2 or more companies that have the same product. So that will increase the company's market share and profits also increase.
2. Strategy against competitors
Due to intense competition, telephone operators need a strategy to attract consumers. Competition occurs in the form of price competition offered by each operator. For example competition telephone rates, sms rates, and internet data rates.
3. Advertisement
One of the real actions in the strategy against competitors is by advertising. Advertising is one of the effective ways of marketing, in the form of billboards, in print and mass media. There are so many competing operator advertisements.
- · The performance
Company performance can be seen from various things, namely price and profit patterns, allocation efficiency, technological progress (innovation), balance of distribution. Where this time will only discuss the most dominant actors in the telecommunications industry, namely Telkomsel.
The year 2010 was a period in which Telkomsel continuously to transform themselves into a better company to modernize its network, infrastructure and human resource capacity building. Telkomsel utilizes the latest technology for our products and services while continuing to use renewable energy in BTS as part of the way Telkomsel operates an environmentally friendly business. In addition, in 2010 Telkomsel began implementing regional-based marketing strategies in order to adjust and accommodate specific needs in each region in Indonesia.
In more detail, the following innovations launched by Telkomsel in order to attract consumers:
Ø Direct connections abroad
In the context of commercialization of VoIP 01052, Telkomsel launched an inexpensive package of international telephone calls to Kartu As through the access code 01052.
Ø
MyTelkomsel
MyTelkomsel is an application launched by Telkomsel to provide easy access to customer service using smartphones and tablets.
Ø SMS
Banking dan mATM bersama
Telkomsel has collaborated with a switching provider (Artajasa) which already has an ATM Bersama network that works with more than 67 banks.
Ø Teman
Dev
Dev Friends is an extension of Telkomsel Application Developer where through this program Telkomsel wants to invite local Indonesian application developers to work together with Telkomsel in generating digital creative industries in Indonesia.
Ø Tap-Izy
Tap-Izy is an innovative SIM card product that has been equipped with Radio Frequency Identification (RFID) technology. The chip and antenna embedded in the SIM card allow customers to make payment transactions by touching the phone to a reader located on the Tap-Izy electronic data capture (EDC) machine at the cashier. Tap-Izy service supported by RFID technology is a development of the T-Cash mobile wallet service that utilizes SMS as its service base.
Ø
Jaringan
Telkomsel also transformed into a digital company with a focus on 3 things: Devices, Networks and Applications. Telkomsel has deployed 4G from Sabang to Merauke. Telkomsel already has more than 4,500 4G BTS with 4G subscribers reaching 5 million (in 2016).
C. Structure Conduct Performance perfect competition market (close to)
Perfect competition market itself is a market or industry structure where there are many sellers and buyers, and every seller or buyer cannot influence the situation in the market. In the real world there is almost no form of market that shows the nature of perfect competition. One example of a form of market that is really close to the nature of perfect competition is the market for staple goods or commodities, namely the rice market. In the rice market, it can be explained the relationship between sellers / producers and buyers / consumers can be said to approach the characteristics of a perfectly competitive market as follows:
ü There are many sellers and buyers in the rice market
ü Individual sellers and buyers will not be able to influence prices
ü Rice commodity can be said to be a relatively homogeneous commodity, although there are differences in taste or quality which will result in price differences
ü The price formed on the rice market is the result of an attractive force between rice supply and rice demand.
ü There are many sellers and buyers in the rice market
ü Individual sellers and buyers will not be able to influence prices
ü Rice commodity can be said to be a relatively homogeneous commodity, although there are differences in taste or quality which will result in price differences
ü The price formed on the rice market is the result of an attractive force between rice supply and rice demand.
- Market Structure
The structure of the rice market can be said to be close to the free competition market because in its implementation there is still interference from the government through the Logistics Business Entity (BULOG), even though the role of BULOG is diminishing. But when viewed from the definition of a perfectly competitive market which states that the market structure or industry there are many sellers and buyers. Based on this understanding it can be said that the rice market is a market (which is close to) perfect competition, where sellers and buyers cannot influence the market. The rice market is included in perfect competition because there are sellers and buyers in the rice market. In addition, each rice produced by each company is similar, identical, and identical so that it is very difficult to distinguish. This can identify that the rice industry is a near-perfect competitive market.
- · Behavior and Performance
As a result of this homogeneity effect, it is not wise if the rice company expects advertising or promotion to help the company to get the maximum profit. This is because consumers know that the rice produced by each company is the same, similar, and very difficult to distinguish. The output of a rice company is relatively small, meaning that the output of one rice company compared to the total output of a rice company is very small. A company's output cannot affect the price of rice in the market because the influence of this company's output will not have an impact on the overall output of rice. Similarly, if the output of other rice companies experiences a decline, the price of rice in the market will not rise, because it is not certain that the output of other rice companies has decreased.
Companies as price takers. This feature is very suitable for rice products because rice companies do not act as determinants of the price of rice itself, but rather as recipients of prices determined by the market. The background to this is that producers act as price recipients, that is, the company's output is relatively small when compared to the market. The price of rice itself is affected by supply and demand itself. However, one company's rice supply cannot affect the price of rice in the market as explained. The price of rice is determined by the market so producers act as price makers. So, to be able to obtain maximum profits, rice producers must be able to adjust the output of their companies.
Basically, this perfectly competitive market, the price of the product is not determined by the government or one producer, but based on demand and supply in the market. However, rice is a staple and influences life. Therefore, even though it is included in the perfectly competitive market, the price of rice still interferes with the government through BULOG, namely in determining the highest and lowest prices. The aim is to protect consumers and producers so that they are not disadvantaged. To prevent producers from losing, the government sets a floor price, which means that the price of rice cannot be below the reasonable limit. Likewise, to prevent consumers from feeling disadvantaged, a ceiling price is determined, this means that producers cannot sell rice prices above the maximum limit.
Rice producers are free in and out, which means that every company that produces rice is free to produce rice or stop producing it. Every rice company has the right to continue producing rice, the right to increase rice production, or the right to stop producing rice. The main thing that underlies every rice company has the right to enter and exit the market, namely mobility that includes unlimited labor and geographic and no costs must be incurred to move the factors of production. The purpose of the factor of production here is labor. Labor is easy to move from one job to another job.
Rice as a perfectly competitive market has weaknesses and advantages. The advantage of rice as a perfectly competitive market, which is to provide the maximum level of prosperity and enjoyment (life utility). The maximum living utility can be achieved because the selling price of rice is the cheapest, the highest amount of rice output so that the ratio of output per population is maximum, and people feel comfortable and safe in consuming rice because rice is a homogeneous product. In addition, the community will not feel cheated by producers about the price of rice because consumers have perfect knowledge about the price of rice. Rice as a perfectly competitive market not only has advantages, but also has weaknesses. The first weakness, namely in the development of technology. Rice has a perfect competition market model so that a long-term balance will be achieved and the company will get a normal profit. The problem is that normal profits that the company gets will not be enough to finance the company in conducting research or development activities. Though research and development activities are needed for companies to obtain production technology that increases production efficiency.
REFERENCE
Industry-Update-Vol-14-2016-Telekomunikasi.BankMandiri
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