G/SG/N/8/IDN/26/Suppl.2  
G/SG/N/10/IDN/26/Suppl.2  
G/SG/N/11/IDN/23/Suppl.1  
 
26 June 2023  
(23-4377) Page: 1/5 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON  
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT  
THEREOF CAUSED BY INCREASED IMPORTS  
(EXTENSION OF THE EXISTING MEASURE)  
INDONESIA  
Fructose Syrup  
Supplement  
The following communication, dated and received on 26 June 2023, is being circulated at the request 
of the delegation of Indonesia . 
 
_______________  
 
Pursuant to Article 7.2 and Article 12.1(b) of the WTO Agreement on Safeguards, the Government 
of the Republic of Indonesia, hereby notifies the Committee on Safeguards the investigation findings 
concerning the extension of a safeguard measure against the importation of Fructose Syrup.  
1  EVIDENCE THAT THE SAFEGUARD MEASURE CONTINUES TO BE NECESSARY TO 
PREVEN T OR  REMEDY SERIOUS INJURY OR THREAT THEREOF AND THAT THE INDUSTRY 
CONCERNED IS ADJUSTIN G 
The Government of the Republic of Indonesia  initiated an investigation on the extension of a 
safeguard measure on 14 April 2023  (G/SG/N/6/IDN/34/Suppl.1 ). The scope of the investigation 
was to decide whether the safeguard measure should be extended or not.  
To determine whether the safeguard measure  continues to be necessary to prevent or remedy 
serious injury or threat thereof and whether the industry is adjusting, the Investigating Authority 
(Komite Pengamanan Perdagangan Indonesia /KPPI) undertook a comprehensive analysis of a broad 
set of data fro m multiple sources: the evidence provided by the Applicant 's member industries in 
their questionnaire replies and written submissions, the information provided by interested parties 
(users, importers, exporting producers and exporting country governments) in their written 
submissions, as well as information available to the Investigating Authority including statistical 
databases and relevant publications.  
1.1  Economic performance of the Applicant  
To assess the economic performance of the Applicant, the developm ents of imports, and other 
relevant data included in its assessment, the Investigating Authority assessed the data for the 
period  2020-2022 ('the investigation period').  
Description  Unit Year  Changes  (%) Trend (%) 
2020  2021  2022  20-21 21-22 20-22 
Domestic Sales  Index  100 181 204 80,83  12,78  42,81  
Production  Index  100 181 204 80,99  12,83  42,91  
Utilization Capacity  Index  100 181 204 80,99  12,83  42,91  
Employment  Index  100 106 98 5,67 (7,38)  (1,07)  
Productivity  Index  100 171 209 71,28  21,83  44,45  
Profit/Loss  Index  100 505 (405)  405,14  (180,20)  (98,19)  
Inventory  Index  100 629 1.414  528,57  125,00  276,07  
Source:  Verification Result  G/SG/N/8/IDN/26/Suppl.2 • G/SG/N/10/IDN/26/Suppl.2 • G/SG/N/11/IDN/23/Suppl.1  
 
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  a) Although the Applicant's production has increased with a trend of 42.91% during the 
investigation period, this increase has not yet reached the predetermined production target 
with an average of 80%. Increased production aimed at production efficiency is one of the 
Petitioners' efforts in realizing the structural adjustment program.  
b) Domestic sales of the Petit ioners experienced an increase with a trend of 42.81% during the 
investigation period. The increase in domestic sales has not reached the Applicant 's sales 
target with an average of 80% due to several orders being canceled by customers.  
c) Productivity has in creased during the investigation period with a trend of 44.45% but it had a 
negative impact on the trend of increasing production compared to the trend of decreasing 
number of employment.  
d) During the investigation period, the Applicant 's Utilization Capacit y showed an increase with 
a trend of 42.91% but only reached approximately 50% of the Applicant 's target with an 
average of 80%. The target of Utilization Capacity  was not achieved due to problems with the 
production machine system and delays in ordering b y customers due to the COVID -19 
pandemic.  
e) During the investigation period, the Applicant 's profits decreased significantly with a trend 
of 98.19% This was due to the fact that the Applicant had to sell their product at a price below 
the production cost, wh ich was caused by an increase in the price of the fructose syrup raw 
material.  
f) The number of Employment decreased with a trend of 1.07% during the investigation period. 
Even though there has been an increase in the number of Employment from 100 index point s 
in 2020 to 106 index points in 2021, in 2022 there has been a reduction in the number of 
Employment to only 98 index points. This shows the potential for mass layoffs to occur in the 
future, if the imposition of safeguard measure on imported fructose syr up products is not 
extended.  
g) The Applicant 's inventory continued to increase with a trend of 276.07% during the 
investigation period. Therefore, there is a cumulation of the Applicant 's product in the storage 
warehouse, which causes an increase in storage costs and reduces the Applicant 's profits or 
increases losses.  
Description  Unit Year  Changes  (%) Trend (%) 
2019  2020  2021  19-20 20-21 19-21 
National 
Consumption  Index  100 63 57 (37,14)  (8,64)  (24,22)  
Market Share of 
Imports  Index  100 45 24 (55) (47,55)  (51,42)  
Market Share of 
Applicant  Index  100 288 355 187,66  23,45  88,44  
Non-Applicant 's 
Market Sales  Index  100 240 343 139,93  43,09  85,28  
Source:  Verification Result  
a) During the investigation period, national consumption experienced a downward trend of 
24.22%. due to the low demand for fructose syrup products from the domestic food and 
beverage industry.  
b) In the same period, the market share of imports also experienced a declining trend, but on 
the other hand, there was a significant inc rease in the share of imports from several countries 
that were exempted from the imposition of the safeguard measure.  
c) During 2020 -2022, the market share of the Applicant and Non -Applicants has increased even 
though the increase in 2021 was not as much as i n 2020. The effectiveness of the safeguard 
measure was believed starting to diminish and therefore the Applicant has the potential to 
experience a threat of serious injury.  G/SG/N/8/IDN/26/Suppl.2 • G/SG/N/10/IDN/26/Suppl.2 • G/SG/N/11/IDN /23/Suppl.1  
 
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  1.2  Evidence that the industry concerned is adjusting  
The domestic industry has conduct ed adjustment plans aiming at increasing its technology, domestic 
sales target, marketing expansion, production efficiency, installed capacity, and additional 
Employment.  The realization of the structural adjustment program that has been carried out by the  
Applicant is as follows:  
Description  Target  Realization  
The Structural adjustment program  100%  56.75%  
Source:  Verification Result  
2  INFORMATION ON WHETHER THERE IS AN ABSOLUTE INCREASE IN IMPORTS OR AN 
INCREASE IN IMPORTS RELATIVE TO DOMESTIC PRODUCTION  
Description  Unit Year  Changes  (%) Trend (%) 
2020  2021  2022  20-21 21-22 20-22 
Volume of Imports  Ton 55,294  15,642  7,495  (71.71)  (52.08)  (63.18)  
National Production  Index  100 178 202 77.67  13.97  42.30  
Imports Relative to 
National Production  Index  100 16 7 (84.08)  (57.95)  (74.12)  
Source:  Statistics Indonesia and Ministry of Industry . 
Based on the table above, even though there was a decline in the amount of fructose syrup imports 
both in absolute and relative terms during the investigation period, the Applicant have so far been 
unable to prevent the threat of serious injury. This is clearly shown by the Applicant 's profits during 
the investigation period which declined by 98.19%.  
3  PRECISE DESCRIPTION OF THE PRODUCT INVOLVED  
"Fructose Syrup, under the Indonesia Harmonized System (HS.) Code: 1702.60.20" in accordance 
with Indonesian Tariff Book (BTKI) 2022 . 
4  IF THE FINAL MEASURE IS EXTENDED, A MEMBER IS ENCOURAGED TO PROVIDE A 
WRITTEN DESCRIPTION OF ANY PART OF THE IMPORTED PRODUCT THAT WILL NO 
LONGER BE SUBJECT TO THE MEASURE  
Not applicable at this stage.  
5  DESCRIPTION OF THE PROPOSED MEASURE  
The proposed measure is in the form of ad valorem duty.  
6  PROPOSED DATE OF INTRODUCTION OF THE MEASURE  
The proposed extension of the safeguard measure will come into effect on 17 September 2023.  
7  EXPECTED DURATION OF THE MEASURE  
The expected duration of the proposed extension of the safeguard measure is three years.  
8  PROPOSED DATE FOR THE REVIEW  
Not applicable.  
9  EXPECTED TIMETABLE FOR PROG RESSIVE LIBERALIZATION OF THE MEASURE  
The measure will continue being progressively liberalized, at regular intervals, at the beginning of  
each period of application as follows:  G/SG/N/8/IDN/26/Suppl.2 • G/SG/N/10/IDN/26/Suppl.2 • G/SG/N/11/IDN/23/Suppl.1  
 
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  Period  Safeguard Duty  (%) 
1st Year (17 September 2023 - 16 September 2024)  18 
2nd Year (17 September 2024 - 16 September 2025)  16 
3rd Year (17 September 2025 - 16 September 2026)  14 
10  IF THE NOTIFICATION RELATES ONLY TO A FINDING OF SERIOUS INJURY OR THREAT 
THEREOF, AND  DOES NOT RELA TE TO A DECISION TO APPLY OR EXTEND A SAFEGUARD 
MEASURE  
Pursuant to Article 7.2 and Article 12.1(b) of the WTO Agreement on Safeguards, The Government 
of the Republic of Indonesia hereby notifies the investigation findings concerning the extension of 
safeguard measures against the importation of Fructose Syrup . This notification is made only for the 
findings of the investigation. Once the decision to extend the safeguard measure is made, it will be 
notified under Article 12.1(c) of the Agreement on Safeguards.  
11  INFORMATION RELATING TO THE EXTENSION OF A SAFEGUARD  MEASURE  
11.1  Evidence that the industry concerned is adjusting and that the safeguard measure 
continues to be necessary to prevent or remedy threat of serious injury  
Provided in item 1.  
11.2  Reference to the WTO document that notified the initial application of the  measure  
Pursuant to Article 12.1(c) of the WTO Agreement on Safeguards, on 22 September 2020, The 
Government of the Republic of Indonesia  notified the Committee on Safeguards regarding the 
decision to impose safeguard measures on the imports of Fructose Syrup  on 22 September 2020 
(G/SG/N/8/IDN/26/Suppl.1  - G/SG/N/10/IDN/26/Suppl.1  - G/SG/N/11/IDN/23 ). 
11.3  Duration of the measure from initial app lication till the date at which it will be 
extended  
The initial definitive safeguard measure is imposed for 3 years, from 17 September 2020 
until 16 September 2023. The extension of the safeguard measure is proposed to be imposed for 
another  3 years, until  16 September 2026.  
11.4  Precise description of the measure in place prior to the date of extension  
The initial definitive measure was notified on 22 September 2020 ( G/SG/N/8/IDN/26/Suppl.1  - 
G/SG/N/10/IDN/26/Suppl.1  - G/SG/N/11/IDN/23 ). 
12  INFORMATION RELATING TO EXPORTING MEMBERS  
12.1  The major exporting Members of imports of the product involved  
The main exporting countries of the product concerned are the People's Republic of China, T ürkiye, 
Republic of Korea and Thailand.  
12.2  If there are any exporting Membe rs to which the measure does not apply for any 
reason other than the application of Article 9.1, the names of such exporting Members 
and reasons for non -application of the measure  
Not applicable . 
13  INVITATION OF CONSULTATIONS  
Members who have a substantial i nterest in the Subject Goods shall submit a written request of 
consultation within a period of 7 days from the date of circulation of this notification . All written 
requests must be sent both in a written letter and in electronic format and must indicate t he name, 
address, e -mail address, phone, and fax number of the Members.  G/SG/N/8/IDN/26/Suppl.2 • G/SG/N/10/IDN/26/Suppl.2 • G/SG/N/11/IDN /23/Suppl.1  
 
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  In accordance with Article 12.3 WTO Agreement on Safeguard, the Government of the Republic of 
Indonesia is open for consultation in order to provide opportunities for those Members, co nsultation 
is scheduled to be held virtually no later than 7 July 2023.  
The contact information for correspondence is:  
DIRECTORATE OF WORLD TRADE ORGANIZATION NEGOTIATIONS , MINISTRY OF TRADE  
Jl. M.I. Ridwan Rais No.5, Building 2, 9th floor, Jakarta 10110  
Phone: (62 -21) 3840139  
Fax: (62 -21) 3840139  
E-mail: dit.multilateral.ppi@kemendag.go.id  
14  MEMBERS ARE ENCOURAGED TO ATTACH, IN AN ELECTRONIC FORM, PUBLICLY 
AVAILABLE DOCUMENT(S) CONTAINING THE RELEVANT DECISION(S) MADE BY THE 
COMPETENT AUTHORITY  
The non -confidential version of the Final Report of this investigation can be found on the website of 
the Indonesian Safeguard Committee : http://kppi.kemendag.go.id/  
__________