Monopolistic Pricing and Market Ethics in Rural Indonesia:‎An Islamic Economic Analysis of The Spice Trade

  • Authors

    • Iwan Wisandani Department of Islamic Economics, Faculty of Islamic Economics, Siliwangi University, Tasikmalaya, Jawa Barat, 46115, Indonesia
    • Joni Department of Chemical Reaction Engineering, Faculty of Engineering, Friedrich-Alexander-Universität Erlangen-Nürnberg, ‎Hugenottenpl, Erlangen, 91054, Germany
    • Agus Ahmad Nasrulloh Department of Islamic Economics Study Program, Faculty of Islamic Economics Study Program, Siliwangi University, Tasikmalaya, ‎Jawa Barat, 46115, Indonesia
    • Acep Zoni Saeful Mubarok Department of Islamic Law, Faculty of Islamic Religion, Siliwangi University, Tasikmalaya, Jawa Barat, 46115, Indonesia
    • Heni Sukmawati Department of Islamic Economics, Faculty of Islamic Economics, Siliwangi University, Tasikmalaya, Jawa Barat, 46115, Indonesia
    • Muhamad Nurhidayat Department of Islamic Economics, Faculty of Islamic Studies, Siliwangi University, Tasikmalaya, Jawa Barat, 46115, Indonesia
    https://doi.org/10.14419/r5wv3s31

    Received date: June 14, 2025

    Accepted date: July 23, 2025

    Published date: July 27, 2025

  • Economics; Market; Islamic; Monopolistic; Pricing

  • Abstract

    This study investigates the monopolistic pricing practices in the spice trade of Desa Bangkapi, a rural agrarian community in West Java, ‎Indonesia. Despite the economic potential of spices such as cardamom and clove, smallholder farmers remain marginalized in price ‎negotiations, bound by informal credit schemes and buyer-controlled market structures. Grounded in the framework of Islamic economics, ‎which emphasizes justice (‘add) and prohibits exploitation (shikar), this research explores how these unethical practices persist and affect ‎farmers’ livelihoods. Using a qualitative descriptive method, data were collected through semi-structured interviews, direct observation, and ‎analysis of local trade documents involving 30 stakeholders: farmers, collectors, and village officials. The findings reveal a pervasive system ‎of price suppression, enforced dependency, and income instability, exacerbated by asymmetric information and power dynamics. Such ‎arrangements not only hinder market fairness but also contradict Islamic ethical norms on transparency, voluntary exchange, and mutual ‎benefit. The study contributes to the literature by integrating Islamic moral economy with empirical analysis of rural market behavior. It ‎proposes actionable strategies, including local price regulation (tastier), cooperative-based collective bargaining, and sharia-compliant ‎financing models to restore justice and empower producers. This research offers practical and ethical insights for policymakers, scholars, ‎and practitioners concerned with equitable trade in Muslim-majority rural economies‎.

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  • How to Cite

    Wisandani, I., Joni, Nasrulloh , A. A. ., Mubarok , A. Z. S. ., Sukmawati, H. . ., & Nurhidayat , M. . (2025). Monopolistic Pricing and Market Ethics in Rural Indonesia:‎An Islamic Economic Analysis of The Spice Trade. International Journal of Accounting and Economics Studies, 12(3), 269-274. https://doi.org/10.14419/r5wv3s31