Mining: One of the Sectors with the Lowest Business Competition

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Adi Ahdiat 12/06/2024 17:00 WIB

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According to the KPPU report, mining is one of the sectors with the lowest level of business competition in Indonesia.

5 Sectors with the Lowest Business Competition Index in Indonesia (2023)

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Mining: One of the Sectors with the Lowest Business Competition

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5 Sectors with the Lowest Business Competition Index in Indonesia (2023)

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Low business competition indicates that the market is dominated by only a few businesses. In this condition, producers can unilaterally set prices, harming consumers.

Based on data from the Indonesian Business Competition Supervisory Commission (KPPU), one of the sectors with the lowest competition in Indonesia is mining.

KPPU, together with the Center for Economics and Development Studies, Padjadjaran University (CEDS Unpad), measured the national business competition index through a survey of stakeholders in 15 economic sectors.

Respondents included provincial-level representatives from the Department of Industry/Trade, the Indonesian Chamber of Commerce and Industry (Kadin), Bank Indonesia offices, and local academics.

The dimensions surveyed included industry structure, behavior, and performance; supply and demand factors; and regulations and institutions related to business competition.

The survey results were then analyzed and formulated into a score on a scale of 1-7. A score of 1 indicates very low competition, while a score of 7 indicates very high competition.

Based on this method, in 2023 the mining sector obtained a business competition index score of 4.56, the third lowest of the 15 sectors researched.

"This can be attributed to the relatively high barriers to entry into the mining and quarrying industry, primarily in terms of regulations, capital, and technology," said the CEDS Unpad team in their report.

Sectors with lower business competition than mining are only electricity and gas supply; and water treatment, waste and waste management, which are largely dominated by the government.

"Sectors generally dominated or managed by the government show low scores," said the CEDS Unpad team.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Mining: One of the Sectors with the Lowest Business Competition

Mining: One of the Sectors with the Lowest Business Competition

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Mining: One of the Sectors with the Lowest Business Competition

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