10 Types of Market Structure in Indonesia
When vacationing in a city, don’t just visit the beautiful places. A unique and various place like the market is turned out to be a fun tourist site. Several cities in Indonesia have various markets that become the target of the tourists both domestic and foreign. Before visiting the market, there are the times you have to know the type of market in Indonesia. Here are the various market structures in Indonesia.
- Perfect competition market
The definition of a perfect competition market is a market where the number of sellers and buyers (consumers) is overwhelming and the products or goods offered or sold are of the same or similar kind. Examples of goods sold in this market form are rice, wheat, coal, potatoes, and so on. Perfect competition market is a market where sellers and buyers can not affect the price, so the price in the market is really the result of agreement and the interaction between supply and demand.
The demand formed reflects consumer desires, while the offer reflects the producer’s wishes. In a perfect competition market, the seller and buyer have absolutely no ability to influence market prices because there is already an inner bond that between the seller and the buyer knows the structure and information present in the perfectly competitive market.
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- Monopoly Market
A monopoly market is a market that occurs when the entire supply of a kind of goods on the market is dominated by a seller or a certain seller. The monopoly market comes from the Greek language ‘monos’ means one and ‘polist’ means the seller.
The monopoly market is a market situation in which there is only one power or one seller who can control the entire offering, so that no other side will compete or there is a pure monopoly. And this company produces goods that do not have a very close replacement. The examples of monopoly markets include markets for state companies in Indonesia such as PLN, Perumka, Telkom.
- Monopolistic competition market
The Monopolistic Market is one of the markets where there are many producers that produce or produce similar goods but have differences in some aspects. The seller in the monopolistic market is not limited, but every product produced must have its own character that distinguishes it from other products.
Such as bath soap, shampoo, toothpaste, and so on. Although the function of all the same bath soap is to clean the body, but every product produced by different manufacturers have special characteristics, such as the difference of fragrance, color, packaging, shape and so on. Or there is also the definition of a monopolistic market is a market where there are many producers or companies that sell different items of style.
- Oligopoly Market
Oligopoly market is one of the few markets where there are only a few producers (sellers) with many buyers in the market. The oligopoly market is one of a kind of market with imperfect competition where the goods sold are homogeneous (difficult to distinguish) even though the producers are different. Linguistically, the word oligopoly comes from two words, namely “oligos” meaning “many” and “polein” which means to sell. In the monopoly market there are only a few companies (producers) that control the market, generally the number of companies is more than two but less than ten.
In the oligopoli market, new companies will be difficult to enter and grow because consumers tend to stick to products from other companies because they already believe and the products are considered the same, other companies will create policies that harm the new company. Examples of oligopoly markets are cigarette industry, soap industry, toothpaste industry, steel industry, etc.
- Abstract Market
The abstract market is a market that trades goods but the goods are not available in the market, there are only goods for example whose form can be: the goods themselves (in small quantities), brochures or securities. Thus, in the money market there will be no few sellers who are peddling money (like fruit merchants are peddling fruit), but in money markets, the money position is represented by short-term valuable reports. Therefore, the money market is classified as an abstract market.
- Traditional Market
Traditional Markets are markets where sellers meet with buyers and make direct transactions that are usually accompanied by the process of bargaining against the price of goods. Goods and services that occur in traditional markets are usually in the form of daily necessities derived from natural resources and physical manpower.
The government functions as a controlling market activity without being directly involved in the economic activities that occur (only involved through its agencies which are also managed by the public such as BUMN, etc.). Consumers and producers in traditional markets are the community itself. Traditional markets usually consist of building small kiosks. The prices formed in traditional markets do not differ much from one manufacturer to another.
- Modern Market
Modern market is where the transaction between the seller and the buyer with the right price so that there is no bargaining activity. In modern market traded goods have good quality and market condition is clean and comfortable. Usually the modern market is located in urban areas. In the modern market there is no direct transaction between the seller and the buyer (consumer), but the consumer chooses the goods to be purchased and the price on the item has been printed on the label. Examples of modern markets are malls, supermarkets, mini markets, and many others.
- Weekly Market
The weekly market is a market where the buying and selling activities take place every once a week on a certain day. Usually the Weekly Market in areas with a small population, ie in the countryside. Examples of Weekly Markets include Sunday Market, which is a market that only takes place on Sunday. On the other days you would not find this market as usual.
In addition to the market based on the above day (Sunday, Monday, Tuesday, etc.) there is also a type of market that can be categorized as Weekly Market, Market by “Pasaran day”. What is “Pasaran”? Pasaran is a term from the Java region consisting of 5, namely Pon, Wage, Kliwon, Legi, and Pahing. Where every turn of the day, there is also a change of market. Market use is usually paired with the day’s name. For example, if today is Monday Kliwon, then tomorrow is Tuesday Pahing, and so on.
- Daily Market
Daily market is a market that goes every day, meaning it never closes or always open. Sellers will sell their wares every day, and buyers can buy every day anyway. Since every day, most of the things that are sold forbidden are the basic human needs consumed or used daily.
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- Annual market
Like the previous markets, the annual market is open every once a year. It usually takes place in major cities in the countries of the world. Goods traded are not everyday necessities, but items that not everyone needs. Examples are machines in factories, photocopiers, auto shows and so on. In addition, the annual market is also useful to promote newly launched businesses and much more. The examples of annual market are sekaten market in Yogyakarta, Pekan Raya Jakarta, and Pekan Rya Hanover in Germany.
Those are the structures of market in Indonesia. All in all, market in Indonesia has the same characteristic such as the available of the various sellers. However, some markets have already been mastered by a certain brain that has been already famous. Hopefully, these writings would be useful for those who want to visit Indonesian market.