Bahasa Inggris Niaga

TUGAS 3
BAHASA INGGRIS NIAGA
Nama Mahasiswa : ELIA HESTINA
Nomor Induk Mahasiswa/NIM : 050982361
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.
ANSWER
Let’s delve into the impact of online marketplaces on SMEs in Indonesia, focusing on Tokopedia
and Shopee. These platforms exhibit monopsony-like conditions due to their dominant buyer
power. Here are some key points:
1. Market Concentration and Buyer Power:
o Tokopedia and Shopee are major players in the Indonesian e-commerce

landscape. Their large user base and extensive reach give them significant
bargaining power.
o As dominant buyers, they can dictate terms to SMEs, affecting pricing, product
placement, and visibility.
2. Pricing Pressure:
o Online marketplaces encourage price competition among sellers. To attract

customers, SMEs often lower prices, leading to reduced profit margins.
o Tokopedia and Shopee may also impose commission fees, further squeezing SME
profits.
3. Competitiveness:
o While these platforms provide exposure to a wide audience, SMEs face intense
competition. Visibility depends on algorithms, ratings, and reviews.
o Smaller businesses struggle to compete with larger, well-established sellers who

can invest in marketing and discounts.
4. Growth Prospects:
o Tokopedia and Shopee can boost SME growth by connecting them with
customers. However, overreliance on these platforms poses risks.
o SMEs may become overly dependent, hindering diversification and innovation.
o Additionally, if the platforms change their algorithms or policies, SMEs could

suffer sudden drops in sales.
5. Examples:
o Pricing Pressure: Imagine a small handicraft seller on Shopee. To stay

competitive, they offer lower prices, but this impacts their profitability.
o Visibility Challenges: A new boutique clothing brand joins Tokopedia. Without

sufficient ratings or reviews, it struggles to appear in search results.
o Overreliance: A local bakery thrives on Tokopedia but neglects its standalone

website. If Tokopedia changes its policies, the bakery faces uncertainty.
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:
In the Indonesian agricultural sector, monopsony-like conditions can arise when a few large
supermarket chains dominate as the primary buyers of products from small-scale farmers. This
market structure can lead to several effects:
 Pricing: Large buyers may exert downward pressure on the prices of agricultural
products due to their significant purchasing power, potentially leading to unsustainable
price levels for farmers.
 Income Stability: Farmers may face income instability as they are compelled to accept
lower prices or deal with unsold inventory due to the reduced demand from a limited
number of buyers.
 Sustainability: The overall sustainability of the agricultural sector could be threatened if

farmers are unable to maintain profitable operations, which may lead to reduced
investment in sustainable practices.
For example, in cases where supermarkets have significant bargaining power, they might dictate
terms that are unfavorable to small-scale farmers, impacting their livelihoods and the viability of
their farming practices.

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TUGAS 3

BAHASA INGGRIS NIAGA

Nama Mahasiswa : ELIA HESTINA

Nomor Induk Mahasiswa/NIM : 050982361

1. Market Concentration and Buyer Power:

o Tokopedia and Shopee are major players in the Indonesian e-commerce

o Online marketplaces encourage price competition among sellers. To attract

o Smaller businesses struggle to compete with larger, well-established sellers who

o Additionally, if the platforms change their algorithms or policies, SMEs could

o Pricing Pressure: Imagine a small handicraft seller on Shopee. To stay

o Visibility Challenges: A new boutique clothing brand joins Tokopedia. Without

o Overreliance: A local bakery thrives on Tokopedia but neglects its standalone

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

 Sustainability: The overall sustainability of the agricultural sector could be threatened if

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