G/SG/N/8/IDN/25/Suppl.1  
G/SG/N/10/IDN/25/Suppl.2  
 
12 August 2022  
(22-6188) Page: 1/7 
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  
Yarn (Other Than Sewing Thread) of Synthetic and Artificial Staple Fibre  
Supplement  
The following notification, dated and received on 11 August  2022, 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 Yarn (Other Than 
Sewing Thread) of Synthetic and Artificial Staple  Fibre. 
1. Evidence that the safeguard measure continues to be necessary to prevent 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 28  April 2022 ( G/SG/N/6/IDN/32/Suppl.1 - G/SG/N/14/IDN/5 ). The scope of 
the investigation was to decide whether the safeguard measure should be extended beyond 
8 November  2022.  
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 from 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 w ritten 
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 developments of im ports, and other 
relevant data included in its assessment, the Investigating Authority assessed the data for the period 
2019-2021 ('the investigation period').  G/SG/N/8/IDN/25/Suppl.1 • G/SG/N/10/IDN/25/Suppl.2  
 
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  Description  Unit Year Changes  (%) Trend (%) 
2019  2020  2021  19-20 20-21 19-21 
Domestic Sales  Index  100 88.83  102.57  (11.17) 15.47 1.28 
Production  Index  100 84.22  94.54  (15.78) 12.25 (2.77) 
Inventory  Index  100 122.77  110.81  22.77  (9.74)  5.26 
Source:  Verification Result  
During the investigation period 2019 -2021, domestic sales experienced an increasing trend of 
1.28%. This proves that the imposition of the safeguard measure is very effective in increasing 
domestic sales. Even though the trend of domestic sales increasing, but production has decreased 
by a trend of 2.77% in the s ame period. In 2021 the Applicant has not been able to increase 
production and sales significantly because the domestic market is still flooded with imported goods.  
In 2020, domestic sales decreased significantly by 11.17% compared to 2019, from 100 index points 
to 88.83 index points. Then in 2021, the Applicant's domestic sales increased by 15.47% compared 
to 2020, from 88.83 index points to 102.57 index points.  
Production decreased significantly in 2020 by 15.78% compared to 2019, from 100 index points to 
84.22 index points. Then, in 2021, in line with the increase in national consumption, the Applicant's 
production increased by 12.25% compared to 2020, from 84.22 index points to 94.54 index points.  
During the investigation period 2019-2021, Applicant's inventory experienced an increasing trend of 
5.26%. This is because the trend of domestic sales has increased, while the trend of production has 
decreased. In 2020 the Applicant's inventory increased by 22.77% compared to 2019, from 100 
index points to 122.77 index points. Then in 2021, Applicant's inventory decreased by 9.74% 
compared to 2020, from 122.77 index points to 110.81 index points.  
Description  Unit Year Changes  (%) Trend (%) 
2019  2020  2021  19-20 20-21 19-21 
Production  Index  100 84.22  94.54  (15.78) 12.25 (2.77) 
Utilization 
Capacity  Index  100 79.34  83.28  (20.66) 4.97 (8.74) 
Source:  Verification Result  
The decrease in the volume of production as explained above a result of a decrease in utilization 
capacity with a trend of 8.74% during the 2019 -2021 investigation period. Furthermore, in 2020 the 
utilization capacity decreased significantly by 20.66% compared to 2019 from 100 index points to 
79.34 index points. Furthermore, in 2021 the utilization cap acity experiences a slight increase of 
4.97% compared to 2020, from 79.34 index points to 83.28 index points.  
Description  Unit Year Changes  (%) Trend (%) 
2019  2020  2021  19-20 20-21 19-21 
Production  Index  100 84.22  94.54  (15.78) 12.25 (2.77) 
Employment  Index  100 101.57  98.78  1.57 (2.74) (0.61) 
Productivity  Index  100 82.92  95.70  (17.08) 15.42 (2.17) 
Profit/Loss  Index  (100)  (494.93)  (654.06)  394.93 32.15 155.75 
Source:  Verification Result  
During the investigation period 2019 -2021, the Applicant's employment experienced a decrease with 
a trend of 0.61%. In 2020, employment increased by 1.57% compared to 2019, from 100 index 
points to 101.57 index points. In 2021, employment decreased again b y 2.74% compared to 2020, 
from 101.57 index points to 98.78 index points. This is due to the fact that in 2021, the Applicant G/SG/N/8/IDN/25/Suppl.1 • G/SG/N/10/IDN/25/Suppl.2  
 
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  reduced employment as a result of still not recovering from serious injury. Meanwhile, at the same 
time, the domestic market is fl ooded with imported goods.  
During the investigation period 2019 -2021, the Applicant's productivity experienced a downward 
trend of 2.17%. This was due to a decrease in the trend of production volume which was greater 
than the decrease in the trend of employment, which were 2.77% and 0.61%, respectively. In 2020 
the Applicant's productivity has decreased by 82.92 index points compared to 2019, and in 2021 the 
Applicant's productivity has increased by 95.70 index points compared to 2020.  
Description  Unit Year Changes  (%) Trend (%) 
2019  2020  2021  19-20 20-21 19-21 
Domestic Sales  Index  100 88.83  102.57  (11.17) 15.47 1.28 
Profit/Loss  Index  (100)  (494.93)  (654.06)  394.93 32.15 155.75 
Source:  Verification Result  
During the investigation period  2019-2021, domestic sales experienced an increasing trend of 
1.28%. In 2020, domestic sales decreased by 11.17% compared to 2019, from 100 index points  to 
88.83 index points . The decrease in sales resulted in an increase in the Applicant 's financial loss in 
2020 by 394.3% compared to 2019, from a loss of (100) index points to (494.93 ) index points. 
Furthermore, in 2021, the Applicant 's financial losses increased compared to 2020 to (654.06 ) index 
points. Thus, during the 2019 -2021 period, the Applicant expe rienced an increase in  financial  losses 
with a trend of 155.75%.  
Description  Unit Year Changes  (%) Trend (%) 
2019  2020  2021  19-20 20-21 19-21 
National 
Consumption  Index  100 76.24  82.40  (23.76) 8.08 (9.22) 
Market Share of 
Imports  Index  100 61.61   99.50  (38.39) 61.51 (0.25) 
Market Share of 
Applicant  Index  100 116.51  124.48  16.51 6.84 11.57 
Source:  Verification Result  
During the 2019 -2021 period, national consumption decreased with a trend of 9.22%. In 2020, 
national consumption decreased significantly by 23.76% compared to 2019, from 100 index points 
to 76.24 index points. In 2021, national consumption increased by 8.08% compared to 2020, from 
76.24 index points to 82.40 index points.  
During the 2019 -2021 period, the import's mar ket share decreased slightly with a trend of 0.25%. 
Although the import market share trend during this period has decreased, in 2021 it increases 
significantly by 61.51% compared to 2020, from 61.61 index points to 99.50 index points.  
During the 2019 -2021 period, the Applicant's market share increased with a trend of 11.57%. In 
2020 the Applicant's market share increased by 16.51% compared to 2019 from 100 index points 
to 116.51 index points, and in 2021 it increased again by 6.84% compared to 2020, from 11 6.51 
index points. to 124.48 index points.  
The purpose of the extension of the safeguard measure is to fulfill the Applicant's commitment to 
completing their structural adjustment program as well as recovering the serious injury. Even though 
the trend of A pplicant's market share is increasing, the Applicant is still experiencing serious injury. 
The extension of the safeguard measure is necessary so that the Applicant can fulfill the 
commitments to complete the structural adjustment program and improve the p erformance of their 
industries.  
 G/SG/N/8/IDN/25/Suppl.1 • G/SG/N/10/IDN/25/Suppl.2  
 
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  Description  Unit Year Trend (%) 
2019  2020  2021  19-21 
Applicant's Selling price per unit  index  100 108.58  102.01  1.00 
Import's Price per Unit  index  98.41  113.39  103.11  2.36 
Price Undercutting  index  1.59 (4.81)  (1.12)  n/a 
Source:  Verification Result  
During the investigation period 2019 -2021, the Applicant's selling price per unit and import's price 
per unit increased with a trend of 1.00% and 2.36%, respectively. in 2019 there was a price 
undercutting where the selling price per import unit was below the selling price per unit of the 
Applicant, thus making it difficult for the Applicant to increase domestic sales and make a profit.  
Description  Unit Year Trend (%) 
2019  2020  2021  19-21 
Applicant's Selling price per unit  Index 100 108.58  102.01  1.00 
Applicant's cost of production  Index 100.70  112.46  106.45  2.82 
Applicant's profit margin  Index (0.69)  (3.88)  (4.44)  n/a 
Import's price  Index 98.41  113.39  103.11  2.36 
Source:  Verification Result  
During the 2019 -2021 period, the Applicant's production cost per unit increased with a trend of 
2.82%. Along with the increase in Applicant's production costs per unit, the Applicant's selling price 
per unit also increased with a trend of 1.00% in the same period. Furthermore, in 2021 the 
Applicant's selling price per unit decreased in line with the decrease in import's selling price per unit. 
Thus, in 2021 there is a price depression.  
Based on the table above, during the period 2019 -2021 Price suppression occurred because the 
Applicant's production cost per unit of the Applicant continues to increase and is above the 
Applicant's selling price per unit, while the highest price difference occurs in 2021, which is equal to 
(4.44) index poin ts. This causes the Applicant to continue to suffer a threat of serious injury.  
1.2.  Evidence that the industry concerned is adjusting  
The Applicant has fulfilled some of its structural adjustment commitment programs in order to be 
able to compete again with imported goods. However, due to the large presence of imported Yarn 
(Other Than Sewing Thread) of Synthetic and Artificial Staple Fi bre in the market, it causing the 
Applicant to not be optimal in fulfilling the structural adjustment program and causing delays in the 
recovery of the Applicant's injury. The realization of the structural adjustment program that has 
been carried out by th e Applicant is as follows:  
Products  Target  Realization  
Yarn (Other Than Sewing Thread) of Synthetic and 
Artificial Staple Fibres  100%  34.15%  
Source:  Verification Result  G/SG/N/8/IDN/25/Suppl.1 • G/SG/N/10/IDN/25/Suppl.2  
 
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  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 (%) 
2019  2020  2021  19-20 20-21 19-21 
Volume of 
Imports  Ton 14,211  6,675  11,651  (53.03)  74.56  (9.45)  
Source:  Indonesian Statistics (BPS)  
As shown in the table above, the number of imports of the Subject Good during the 2019 -2021 
period experienced a downward trend of 9.45%. The downward trend in the number of imports of 
the Subject Good during the 2019 -2021 period occurred due to the decline in the number of imports 
referred to in 2020 by 53.03%. This shows that the imposition of the definitive safeguard measure 
which has been in effect since 9 November 2019 is very effective. However, in 2021 the number of 
imports of the Subject Good experienced a sharp in crease of 74.56% compared to 2020.  
Description  Unit Year Changes  (%) Trend (%) 
2019  2020  2021  19-20 20-21 19-21 
Volume of 
Imports  Ton 14,211  6,675  11,651  (53.03)  74.55  (9.45)  
National 
Production  Index  100 87.03  88.84  (12.97)  2.07 (5.75)  
Imports Relative 
to National 
Production  Index  100 53.97  92.29  (46.03)  71.01 (3.93)  
Source:  Indonesian Statistics (BPS)  
Based on the table above, imports relative to national production during the 2019 -2021 period 
experienced a downward trend of 3.93%. The downward trend in imports relative during the 
2019-2021 period occurred due to the decline in imports relative in 2020 by 46.03%, as a result of 
the effective imposition of definitive safeguard measure which has been in effect since 
9 November  2019. However, in 2021, imports relative to national production increase again by 
71.01% compared to 2020.  
3. Precise description of the product involved  
Yarn (Other Than Sewing Thread) of Synthetic and Artificial Staple Fibre under Harmonized System 
(HS.)  codes based on Indonesian Custom Tariffs Book (BTKI) Year 2022:  5509.22.00, 
5509.32.00, 5509.51.00, 5509.53.00, 5510.12.00, and 5510.90.00 . 
4. If the final measure is extended, a member is encouraged to provide a written 
description of any part of the importe d product that will no longer be subject to the 
measure  
Not applicable at this stage.  
5. Description of the proposed measure  
The proposed measure consists of a Tariff available for each HS code under BTKI 2022.  
6. Proposed date of introduction of the measure  
The proposed extension of the safeguard measure will come into effect on 9 November 2022.  
7. Expected duration of the measure  
The expected duration of the proposed extension of the safeguard measure is three years, until 
8 November  2025.  G/SG/N/8/IDN/25/Suppl.1 • G/SG/N/10/IDN/25/Suppl.2  
 
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  8. Proposed date for the re view  
Not Applicable.  
9. Expected timetable for progressive liberalization of the measure  
The measure will continue being progressively liberalized, at regular intervals, at the beginning of  
each period of application is as follows:  
Period  Safeguard Duty  
1st Year (9 November 2022 - 8 November 2023)  Rp 766/Kg  
2nd Year (9 November 2023 - 8 November 2024)  Rp 553/Kg  
3rd Year (9 November 2024 - 8 November 2025)  Rp 340/Kg  
 
10. If the notification relates only to a finding of serious injury or threat thereof, and  
does not relate 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 on the investigation findings concerning the extension 
of safeguard measures against the importation of Yarn (Other Than Sewing Thread) of Synthetic and 
Artificial Staple Fibre . This notification is only made 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 Saf eguards.  
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 serious injury.  
Although the definitive safeguard measure has been imposed on the Subject Good, the fact is that 
the imports are still increasing in absolute terms in 2021 and the volume of imports will increase 
significantly if the safeguard measure is not extended.  
In addition, the Applicant's performance data shows a threat of serious injury as evidenced by a 
downward trend in several performance indicators of the Applicant, such as production, productivity, 
utilization capacity, and employment, as well as an increase in inventories and financial injury. If 
the safeguard measure is not extended, the Applicant's threat of serious injury will continue to occur 
and may even lead to serious injury, or even worse, bankruptcy. There is a causal link between the 
threat of serious injury suffered by the Applicant as a r esult of the increase in the number of imports 
of the Subject Good and not caused by other factors.  
The Applicant has completed some of the structural adjustment programs, however, the Applicant 
still needs additional time to complete the programs. If the safeguard measure is not extended, the 
Applicant will not be able to complete the structural adjustment program and will experience 
difficulties again in competing with imported goods.  
11.2.  Reference to the WTO document that notified the initial application of the measure.  
Pursuant to Article  12.4 of the WTO Agreement on Safeguards, on 13  November  2019 the 
Government of the Republic of Indonesia  notified the Committee on Safeguards regarding the 
imposition of a provisional safeguard measure on the imports of Yarn (Other Than Sewing Thread) 
of Synthetic and Artificial Staple Fibre on 9  November  2019 (G/SG/N/7/IDN/3/Suppl.1  - 
G/SG/N/11/IDN/19/Suppl.1).  
Pursuant to Article 12.1(c) of the WTO Agreement on Safeguards, on 3  June 2020 the Government 
of the Republic of I ndonesia  notified the Committee on Safeguards regarding the decision to impose 
safeguard measures on the imports of Yarn (Other Than Sewing Thread) of Synthetic and Artificial 
Staple Fibre on 27  May 2020 (G/SG/N/10/IDN/25/Suppl.1  - G/SG/N/11/IDN/19/Suppl.2).  G/SG/N/8/IDN/25/Suppl.1 • G/SG/N/10/IDN/25/Suppl.2  
 
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  11.3.  Duration of the measure from initial application till the date at which it will be 
extended  
The duration of the provisional safeguard measure was 200 days from 9  November  2019 until 
26 May 2020 and the initial definitive safeguar d measure was imposed from 27  May 2020 until 
8 November  2022. The extension of the safeguard measure is proposed to be imposed for 3 years, 
until 8  November  2025.  
11.4.  Precise description of the measure in place prior to the date of extension  
The original measu re was notified on 3  June 2020 (G/SG/N/10/IDN/25/Suppl.1  -
G/SG/N/11/IDN/19/Suppl.2).  
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 People's  Republic of China, Viet Nam, 
Thailand, and India.  
12.2.  If there are any exporting Members 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 interest 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 the name, 
address, e -mail address, phone, and fax number of the Members.  
In accordance with Article 12.3 WTO Agreement on Safeguard, the Government of th e Republic of 
Indonesia is open for consultation in order to provide opportunities for those Members, consultation 
is scheduled to be held no later than 2  September  2022.  
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 Indon esian Safeguard Committee: www.kppi.kemendag.go.id  
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