Tuesday, November 20, 2012


Still on the rising price of beef meat in Jakarta. Kompas again runs a headline on it, saying that the market for beef in Jakarta is "vulnerable". Apparently this refers to the oligopolistic nature of the market, as indicated by a resource person.

Another article on the same subject again calls for "self-sufficiency" to overcome the problem. In fact, the author argues, this is the best time to impose self-sufficiency.

Which reminds of a good piece in the same newspaper that I overlooked yesterday. As the author said, competition is not always a bad thing. He gave examples of how competition brought good outcomes.

Once upon a time, the flour market in Indonesia was so distorted by a monopolist. The price went skyrocketing. The government finally decided, the only way to calm down the price was to open up the market to imported flour. Within days, the price was tamed. Search "Bogasari".

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