Abstrak 
Industrial concentration and price-cost margin of the Indonesian food and beverages sector
Maman Setiawan, Grigorios Emvalomatis, Alfons Oude Lansink
Universitas Padjadjaran, Applied Economics, 2012, 44, 3805–3814, 19 March 2014, DOI: 10.1080/00036846.2011.581220 To link to this article: https://dx.doi.org/10.1080/00036846.2011.581220
Inggris
Universitas Padjadjaran, Applied Economics, 2012, 44, 3805–3814, 19 March 2014, DOI: 10.1080/00036846.2011.581220 To link to this article: https://dx.doi.org/10.1080/00036846.2011.581220
competition law, food and beverages secto, industrial concentration, price-cost margin
This article investigates trends in industrial concentration and its relationship with the price-cost margin in 54 subsectors of the Indonesian food and beverages sector in the period 1995 to 2006. This study uses firm-level survey data provided by the Indonesian Bureau of Central Statistics (BPS), classified at the five-digit International Standard Industrial Classification (ISIC) Level. The results show a significant increase in industrial concentration in 1995 to 1999, which coincided with the period of the economic crisis in Indonesia. After 1999, the industrial concentration exhibits a slightly decreasing long-term trend. Furthermore, the industrial concentration for all subsectors tends to converge to the same value in the long run. Additionally, results show that higher industrial concentration yields a higher price-cost margin. Finally, the introduction of the competition law in 1999 has slightly lowered industrial concentration and the price-cost margin.