G/SG/N/7/IDN/4  
G/SG/N/11/IDN/20  
6 November  2019 
(19-7557) Page: 1/7 
Committee on Safeguards  Original:  English  
 
  
NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT ON  
SAFEGUARDS BEFORE TAKING A PROVISIONAL SAFEGUARD  
MEASURE REFERRED TO IN ARTICLE 6  
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
INDONESIA  
(Curtains (Including Drapes), Interior Blinds, Bed Valances, and Other Furnishing Articles ) 
The following communication, dated 5  November  2019, is being circulated at the request of the 
delegation of Indonesia.  
 
_______________  
 
 
NOTIFICATION UNDER A RTICLE 12.4 BEFO RE TAKING PROVISIONA L SAFEGUARD 
MEASURES  
1  THE PRODUCT SUBJECT TO THE PROPOSED PROV ISIONAL SAFEGUARD ME ASURE  
Curtains (Including Drapes), Interior Blinds, Bed Valances, and Other Furnishing Articles  ("the 
product concerned "), under Harmonized System  (HS.) code 6303.12.00, 6303.19.90, 6303.91.00, 
6303.92.00, 6303.99.00, 6304.19.90, 6304.91.90, and 6304.92.00 . 
2  THE PROPOSED PROVISIONAL  SAFEGUARD MEASURE  
The proposed provisional safeguard measure is in the form of specific tariff as much as 
Rp. 41,083 /kg. 
 
3  THE PROPOSED DATE OF  THE INTRODUCTION OF  THE PROPOSED PROVIS IONAL 
SAFEGUARD MEASURE  
The provisional safeguard measure is proposed to enter into force after the publication of the decree 
of the Minister of Finance of the Republic of Indonesia, which will be promulgated at the Official 
Gazette  
4  THE EXPECTED DURATIO N OF THE PROVISIONAL  SAFEGUARD MEASURE  
The provisional safeguard measure will be applied for 200 d ays from the date of its entry into force.  
5  PROVIDE THE BASIS FO R: 
(i) Making a preliminary determination, as provided for in Article 6, that increased 
imports have caused or are threatening to cause serious injury;  G/SG/N/7/IDN/4 • G/SG/N/11/IDN/20  
- 2 - 
   Unforeseen Development  
There has been an inc rease in fabric industry 's investment in the People 's Republic of China (PRC) 
during 2016 -2018. These new investments caused an increase in production and production capacity 
of the fabric industry in PRC . Therefore, this condition  is an unforeseen development  that indirectly 
causes an increase in exports of Chinese fabric downstream products (including product concerned) 
to other countries, such as  Indonesia.  
 Increased Imports  
a. absolute  
The absolute increased import s of the product concerned  is presented at the table below : 
Description  Period of Investigation  Trend (%)   
2016  2017  2018  January -June  2016 -2018  
2018  2019  
Import Volume (Ton)  410 1,788  2,500  832 1,340  147 
Source : Indonesian  Statistics (BPS) . 
The import volume of the product concerned has increased during the period of 2016 -2018, from 
410 tons in 2016 to 1,788  tons in 2017 and increased again to 2,500  tons in 2018 . During the period 
of 2016-2018, import volume has increased in absolute terms with the trend by 147%. 
The import volume of the product concerned also increased in absolute terms by 61% in the period 
of January -June 2018 to the period of January -June 2019 from 832 tons to 1,340  tons. 
b. relative to domestic production  
The imports relative to domestic production of the product concerned is  presented at the table below:  
Description  Period of Investigation  Trend (%)   
2016  2017  2018  January -June  2016 -2018  
2018  2019  
Import relative to domestic 
production (Index)  100 533.64  694.38  100 209.65  163.50  
Source : Indonesian  Statistics (BPS) . 
As seen in table above, there was a surge in import relative to domestic production during the period 
of 2016 -2018, from 100 index points  in 2016 to 533.64  index points  in 2017, and  continued to 
increase to 694.38  index points  in 2018.  
The import volume relative to domestic production of the product concerned also increased in the 
period of January -June 2018-2019 from 100 index points to 209.65  index points.  
c. share of imports  
The share of imports of the major exporters in 2018 are presented at the table below:  
Exporters  Volume (Ton)  Share (%)  
People 's Republic of China (PRC)  2,263  90.53  
Singapore  91 3.64 
Other Countries  146 5.83 
Total  2,500  100 
Source : Indonesian  Statistics (BPS) . 
Based on the table above, the largest exporters of product concerned to Indonesia in 2018 were the 
PRC with a share of 90.53 %, followed by the Singapore  with a share of 3.64%, and Other Countries 
with a share of 5.83%. G/SG/N/7/IDN/4 • G/SG/N/11/IDN/20  
- 3 - 
   Serious Injury or Threat of Serious Injury  
In order to make a determination of serious injury or threat thereof to the domestic producers of 
the products concerned, an evaluation of all relevant factors of an objective and quantifiable nature 
having a bearing on the situation of the domestic industry has been undertaken between 2016 -2018 
and period of January -June 2018-2019. Figures on economic indicators of the domestic producers 
are based on the petition submitted by domestic producers.  
Indicators  Unit Year Trend 
(%) Growth 
(%) 
2016  2017  2018  January -June  16-18 Jan-Jun 
18-19 2018  2019  
Production  Index  100 81.14  86.71  100 76.65  -6.88 -23.35  
Domestic Sales  Index  100 81.49  83.28  100 84.53  -8.74 -15.47  
Productivity  Index  100 105.67  127.30  100 80.00  12.83  -19.75  
Capacity Utilization  Index  100 81.14  86.71  100 76.65  -6.88 -8.65 
Loss Index  (100)  (491.34)  (537.96)  (100)  (114.16)  96.95  14.18  
Employment  Index  100 76.79  68.11  100 65.05  -17.47  -4.49 
Market Share of 
Applicant  Index  100 47.15  37.99  100 63.34  -38.36  -7.46 
Market Share of 
Non-Applicant  Index  100 47.52  38.80  100 63.56  -37.71  -5.74 
Market share of 
Imports  Index  100 252.37  278.30  100 120.64  66.82  13.19  
Source : Indonesian Textile Association (API) 's Petition . 
Based on table above, Applicant's production experienced a downward trend in 2016 -2018 by 
6.88%. Furthermore, in the period of January -June 2018-2019 the Petitioners' production also 
decreased by 23.35 % from 100 index points in the January -June 2018 period to 76.65  index points 
in the Janu ary-June 2019 period.  
The Applicant 's domestic sales during the period of 2016 -2018 decreased respectively from 100 
index points in 2016, to 81.49  index points in 2017, and 83.28  index points in 2018 . Furthermore, 
in the period of January -June 2018-2019 th e Applicant 's domestic sales also decreased by 15.47 % 
from 100 index points in the January -June 2018 period to 84.53  index points in the 
January -June 2019 period.  
Productivity during 2016 to 2018 increased  with a trend of 12.83 % due to the employment reduction . 
However , in the period of January -June 2018-2019 the Petitioner's productivity decreased by 
19.75 % from 100 index points in the January -June 2018 period to 80.00  index points in the 
January -June 2019 period.  
Capacity utilization has decreased during the period of 2016 -2018 with a trend of 6.88%. Moreover, 
in the period of January -June 2018-2019 the Applicant's capacity utilization also decreased by 8.65% 
from 100 index points in the January -June 2018 period to 76.65  index points in the 
January -June 2019 period.  
In terms of operating loss, the Applicant 's had experienced a loss of 100 index points in 2016, and 
in 2017 and 2018 the Petitioner suffer a nother  financial losses of 491.34  index points in 2017 and 
537.96  index points in 2018 . Financial losses continued in the period of January -June 2018-2019 
from 100 index points to 114.16  index points.  
The decline in  domestic sales has an impact on the decline in the production of the Applicant, so that 
the operational cost increases . As a result, the Applicant was forced to reduce employment in 
2016-2018 with a trend of 17.47 %. Furthermore, the reduction continued in  period of 
January -June 2018-2019 from 100 index points to 65.05 index points.  
The increase in national consumption that occurred in 2016 -2018 was inversely proportional to the 
Applicant 's domestic sales and taken over by imported goods which experienced a surge increased 
over a period of 3 years (2016 -2018) . The increase imports resulted in the eroded market share of 
the Applicant 's and Non -Applicant 's. During the period of 2016 -2018 the market share of the 
Petitioners and Non -Petitioners decr eased with a trend of 38.36 % and 37.71 % respectively, while G/SG/N/7/IDN/4 • G/SG/N/11/IDN/20  
- 4 - 
  in the same period the import market share increased with a trend of 66.82 %. Furthermore, in the 
period of January -June 2018-2019 the Applicant 's Market Share also decreased from 100 index 
points in the January -June 2018 period to 63.34  index points in the January -June 2019 period.  
Based on the paragraphs above, the Investigating Authority provisionally  concluded  that during the 
investigation period, the Applicant suffered a serious injury based on performance indicators which 
showed that there had been an upward trend in financial losses and a downward trend in production, 
domestic sales, capacity  utilization , employment , and market share . 
 Causal Link  
Based on the results of the preliminary determination as mentioned in paragraphs above, the 
Investigating Authority provisionally concluded that there is a causal link between a serious injury 
suffered by domestic i ndustry to the increase in imports of the product concerned, based on:  
a. There was a sharp, sudden, recent, and significant increase d in imports of product 
concerned in absolute and relative terms during 2016 -2018 and 
January -June 2018-2019.  
b. There had been a n upward trend in financial losses and a downward trend in product ion, 
domestic sales, capacity utilization, employment, and market share.  
c. During period of 2016 -2018 the market share of imports increased with a trend of 
66.82 %, which caused the market share of Applicant declined with a trend of 38.36 %, 
and the market share of Non -Applicant also declined with a trend of 37.71 %. 
Furthermore, in period of January -June 2018-2019 market share of applicant and 
non-applicant was also been eroded by market share of import where the market share 
of import increase by 13.19 %, meanwhile, th e applicant and non -applicant market share 
decrease by 7.46 % and 5.74 %. 
The Investigati ng Authority has not identified other factors that would weaken the causal link 
between the increase in imports and the serious injury of the domestic industry . Nevertheless, a 
more detailed examination of all other factors that have or may have contribute d to the injury will 
be undertaken in the remainder of the investigation.  
(ii) Determining  that there are critical circumstances where delay would cause 
damage which it would be difficult to repair.  
There are a number of the Applicant 's member companies that are currently in a critical situation 
that is very problematic  and can adversely affect the business activities of the referred members.  
These critical circumstances  can be seen in its financial ratio where the Applicant experiencin g 
financial problems during 2016 -2018 and period of January -June 2018-2019 in terms of liquidity, 
solvency, activities, and profitability which if not immediately addressed w ill lead to business 
bankruptcy as stipulated from z -score.  
No Ratios  Unit Result  Benchmark  
1 Liquidity Ratio      
Current Ratio  % Average  
90.6 ≥ 100  
Quick Ratio  % Average  
52,5%  ≥ 100  
Cash Ratio  % Average  
38.0%  ≥ 100  
2 Solvability Ratio      
Debt to Equity Ratio  % Average  
253.7  ≤ 100  
3 Activity Ratio      
Account Receivable Ratio  X Average  
4.4 ≥ 10 
Inventory Turnover Ratio  X Average  
1.5 ≥ 10 G/SG/N/7/IDN/4 • G/SG/N/11/IDN/20  
- 5 - 
  No Ratios  Unit Result  Benchmark  
Fix Assets Turnover Ratio  X Average  
2.0 ≥ 10 
 Total Assets Turnover Ratio  X Average  
0.5 ≥ 10 
4. Profitability Ratio      
Profit Margin  % Average  
(10,6)  ≥ 5 
Operating Profit Margin  % Average  
(2.5) ≥ 5 
Return on Investment  % Average  
(12.5)  ≥ 5 
Return on Asset  % Average  
(4.7) ≥ 5 
5 Z-score  Score  Average  
0.6 ≥ 2.9  
Source : Indonesian Textile Association (API) 's Petition . 
As it can be seen from the above ratios, the very viability of the producers concerned is a stake, and 
the preliminary determination of the Investigating Authority is that unless provisional safeguard 
measures are urgently taken, irreparable damage will result in terms of capacity shut do wns, plant 
closures and eventual bankruptcy.  
6  OFFER OF CONSULTATIO NS 
The Government of the Republic of Indonesia offers consultations on the provisional safeguard 
measures . 
 
NOTIFICATION UNDER A RTICLE 9, FOOTNOTE 2  UPON TAKING A DECIS ION NOT TO APPLY 
THOSE PROVISIONAL SA FEGUARD MEASURES TO CERTAIN PRODUCTS ORI GINATING IN 
DEVELOPING COUNTRIES  
1  SPECIFY THE MEASURE  
The proposed provisional safeguard measure is  in the form of specific tariff  as much as 
Rp. 41,083/kg . 
2  SPECIFY THE PRODUCT SUBJECT TO THE MEASURE  
Curtains (Including Drapes), Interior Blinds, Bed Valances, and Other Furnishing Articles, under 
Harmonized System  (HS.) code 6303.12.00, 6303.19.90, 6303.91.00, 6303.92.00, 6303.99.00, 
6304.19.90, 6304.91.90, and 6304.92.00  
3  SPECIFY THE DEVELOPI NG COUNTRIES TO WHICH T HE MEASURE IS NOT AP PLIED 
UNDER ARTICLE  9.1 OF  THE AGREEMENT ON SA FEGUARDS  
The developing countries which are excluded from the provisional measure as they export in 
quantities less than 3 % of imports to Indonesia are listed below  under  Article 9.1 of the Agreement 
on Safeguards.   G/SG/N/7/IDN/4 • G/SG/N/11/IDN/20  
- 6 - 
  TABLE . LIST OF DEVELOPING CO UNTRIES MEMBERS OF T HE WTO TO WHICH THE 
PROVISIONAL MEASURES  DO NOT APPLY  
No. Developing Countries  No. Developing Countries  
1 Afghanistan  62 Liechtenstein  
2 Albania  63 Macao, China  
3 Angola  64 Madagascar  
4 Antigua and Barbuda  65 Malawi  
5 Argentina  66 Malaysia  
6 Armenia  67 Maldives  
7 Bahrain, Kingdom of  68 Mali  
8 Bangladesh  69 Mauritania  
9 Barbados  70 Mauritius  
10 Belize  71 Mexico  
11 Benin  72 Moldova, Republic of  
12 Bolivia, Plurinational State of  73 Mongolia  
13 Botswana  74 Montenegro  
14 Brazil  75 Morocco  
15 Brunei Darussalam  76 Mozambique  
16 Burkina Faso  77 Myanmar  
17 Burundi  78 Namibia  
18 Cabo Verde  79 Nepal  
19 Cambodia  80 Nicaragua  
20 Cameroon  81 Niger  
21 Central African Republic  82 Nigeria  
22 Chad  83 Oman  
23 Chile  84 Pakistan  
24 Colombia  85 Panama  
25 Congo  86 Papua New Guinea  
26 Costa Rica  87 Paraguay  
27 Côte d'Ivoire  88 Peru  
28 Cuba  89 Philippines  
29 Democratic Republic of the Congo  90 Qatar  
30 Djibouti  91 Russian Federation  
31 Dominica  92 Rwanda  
32 Dominican Republic  93 Saint Kitts and Nevis  
33 Ecuador  94 Saint Lucia  
34 Egypt  95 Saint Vincent and the Grenadines  
35 El Salvador  96 Samoa  
36 Eswatini  97 Saudi Arabia, Kingdom of  
37 Fiji  98 Senegal  
38 Gabon  99 Seychelles  
39 The Gambia  100 Sierra Leone  
40 Georgia  101 Solomon Islands   
41 Ghana  102 South Africa  
42 Grenada  103 Sri Lanka  
43 Guatemala  104 Surinam e 
44 Guinea  105 Chinese Tapei  
45 Guinea -Bissau  106 Tajikistan  
46 Guyana  107 Tanzania  
47 Haiti  108 Thailand  
48 Honduras  109 The former Yugoslav Republic of Macedonia 
(FYROM)  
49 Hong Kong, China  110 Togo  
50 India 111 Tonga  
51 Israel  112 Trinidad and Tobago  
52 Jamaica  113 Tunisia  
53 Jordan  114 Turkey  
54 Kazak hstan 115 Uganda  
55 Kenya  116 Ukraine  
56 Korea, Republic of  117 United Arab Emirates  
57 Kuwait, the State of  118 Uruguay  
58 Kyrgyz Republic  119 Vanuatu  
59 Lao People's Democratic Republic  120 Venezuela, Bolivarian Republic of  
60 Lesotho  121 Viet Nam  
61 Liberia  122 Yemen  G/SG/N/7/IDN/4 • G/SG/N/11/IDN/20  
- 7 - 
  No. Developing Countries  No. Developing Countries  
123 Zambia  124 Zimbabwe  
 
__________