Price Collusion and Its Impact on Consumer Welfare: A Literature Review of the Last Ten Years (2015–2025)

Abstract

Price collusion and cartel practices remain major challenges in Indonesia’s strategic sectors, particularly food, transportation, and telecommunications. These practices distort market competition, increase prices above competitive levels, and reduce consumer welfare by limiting access to essential goods and services. This study aims to analyze the impact of cartel practices on consumer welfare in Indonesia during the period 2015–2025. The research employs a Systematic Literature Review (SLR) approach by analyzing fifteen selected references consisting of academic journals, books, institutional reports, and international publications. The findings indicate that cartel practices consistently generate negative effects on consumer welfare through higher prices, reduced consumer surplus, and weakened market efficiency. The study also finds that welfare losses are more severe in strategic sectors due to their importance in daily economic activities. Furthermore, competition law enforcement by the Indonesian Competition Commission (KPPU) plays a moderating role in reducing the negative effects of collusion, although enforcement effectiveness remains limited by institutional and evidentiary challenges. The findings also provide important implications for business management, particularly regarding ethical business conduct, corporate governance, and sustainable competitive strategies. Organizations that prioritize fair competition and regulatory compliance are more likely to achieve long-term stakeholder trust, organizational legitimacy, and sustainable business performance.