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Manufacturers are one of the parties involved in day-to-day economic activities, along with consumers and traders. The role of producers here is to meet market needs before they are distributed and accepted by consumers. To learn more about the definition and scope of other manufacturers, please read the brief description below.

manufacturer definition

What is a manufacturer? According to KBBI, the meaning of the word producer is one who makes goods. In another sense, producers on the Library of Economics and Liberty website are individuals who produce and provide goods and services.

According to Harry Duintjer Tebbens in International Product Liability, producers are parties, often referred to as entrepreneurs with the role of producing goods and services. From some of these definitions, it can be concluded that the notion of producer refers to the meaning of the part that carries out productive activities in the economic system. Some examples of makers are batik artisans, cooking oil makers, and so on.

According to Alam S. in the book “Economics”, production activities refer not only to the activity of producing something but also to increasing the usefulness of an object so that it can be more useful in meeting human needs. In its implementation, several factors affect the production process, including the following.


1. nature

The main factor influencing the production process is natural. Because it acts as a raw material supplier in the production process. That is why entrepreneurs must always keep an eye on the preservation of nature so that the availability of raw materials is always maintained.


2. human

In production, humans play the role of processing raw materials from nature so that they can be consumed.


3. Capital

Besides man and nature, another factor affecting production is capital, whether fixed or not. Capital is needed to support manufacturing activities in the manufacture of products on a large scale. Examples such as machines, raw materials, diesel, etc.


4. Skills

Production activities also require expertise to be sustainable. With expertise, the activity of commodity production can become more effective and efficient.


manufacturer shape

In general, some forms of producers are individuals and corporations. Here’s the explanation.


  1. Single Producer

As the name suggests, a single manufacturer is a form of product manufacturer whose production activity is carried out alone without cooperation with other parties. While this type of manufacturer still has employees, the number is relatively smaller than in this type of company.


  1. Business entity manufacturer

In contrast to the individual form, the producer of a commercial unit has a larger reach because it is operated by a commercial unit. Examples such as foundations, cooperatives, etc.


Manufacturer business field

Some of the business lines carried out by manufacturers are as follows.


  1. Agriculture

Producers engaged in this field conduct the business of cultivating natural products such as agriculture, plantations, inland fisheries, and livestock.


  1. Industry

If a producer processes raw materials into finished goods, he is active in the industry. Examples are handicrafts, textiles, and assembly.


  1. Service Sector

In this area, manufacturers provide services in the form of services to consumers or the public for profit. For example banking services, legal services, or assembly.


  1. Extraction field

A producer active in this area usually takes and processes natural products directly. For example, PLTU (Steam Power Plant), mines coal for electricity generation.


  1. Trade Area

In this area, producers are parties who only buy and sell goods without changing their form. For example regional, national or international trading activities.


Producer Rights and Obligations

Once you know what a manufacturer is, you need to know what their rights and obligations are.


  1. Producer Rights

In practice, producer rights are governed by Article 6 of Law No. 8 of 1999 on Consumer Protection. Some of the points are as follows:

Producers are entitled to receive payments according to the agreement between the two parties regarding the terms and exchange rates of goods or services.

Manufacturers are entitled to legal protections from consumers who do not believe well in the buying and selling process.

Manufacturers have the right to defend themselves in the judicial resolution of consumer disputes if they arise in the future.

Manufacturers have the right to rehabilitate or improve their company’s reputation if it can be legally proven that their goods or services do not harm consumers.

Manufacturers are entitled to legal equality, which is regulated in the provisions of other laws and regulations


  1. Obligations of the manufacturer

In addition to the rights, several obligations must be fulfilled by the producers. This is also in the Consumer Protection Act No. 8 of 1999 Article 7.

Manufacturers must have good intentions in all of their business activities.

Manufacturers must provide truthful, clear, and honest information about the goods or services being traded. Also explain use, repair, and maintenance.

Manufacturers should treat or serve consumers correctly and honestly and not in a discriminatory or indiscriminate manner.

Manufacturers should ensure that the goods or services traded meet applicable quality standards.

Manufacturers must allow consumers to test the goods or services produced. In addition, the manufacturer must also provide a guarantee or warranty for these products.

Manufacturers are obliged to replace or compensate if future damage can be proven to occur through the use of traded goods or services.

Manufacturers are obliged to pay compensation or damages if in the future it turns out that goods or services received from consumers do not conform to the agreement between the two.


producer role

What is the role of producers in economic activity? Below are some examples of the role of producers for economic operators:


  1. Produce article

The role of producers is, inter alia, that of a producer of goods for sellers or consumers.


  1. Increase the use of articles

As already explained, the purpose of producers in the production process is not only to produce goods but also to add value to them. For example, to increase the utility value of a tea, a producer can process it into a variety of trendy beverage products to increase sales.


  1. Make a profit

The function of production for producers is to make a profit. Of course, without a supply of raw materials from the producers, economic agents will find it difficult to produce products and make profits.


  1. Agent of economic growth

In addition, one of the functions of producers is as the engine of the national economy. Because to be able to carry out production activities, producers need employees. The more employees are needed, the greater the employment opportunities.


This is an explanation of the importance, goals, rights, roles, and business areas of producers that need to be known. If you are a producer of goods and services, then it is important as a producer to understand consumer behavior and needs. One of them is the fulfillment of customer satisfaction. Therefore, it is necessary to survey the target market so that the resulting product can meet consumer desires. However, there are several things to consider when conducting research such as B. Choosing the right respondents and accurate dates.

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