G/SG/N/8/IDN/24  
G/SG/N/10/IDN/24  
3 March  2020 
(20-1659) Page: 1/7 
Committee on Safeguards  Original:  English  
 
  
NOTIFICATION UNDER A RTICLE 12.1(B) OF TH E AGREEMENT ON  
SAFEGUARDS ON FINDIN G A SERIOUS INJURY O R THREAT  
THEREOF CAUSED BY IN CREASED IMPORTS  
 
NOTIFICATION OF A PR OPOSAL TO IMPOSE A M EASURE  
INDONESIA  
Curtains (Including Drapes), Interior Blinds, Bed Valances, and Other Furnishing Articles  
The following communication, dated 28 February 2020, is being circulated at the request of the 
delegation of Indonesia.  
 
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Pursuant to Articles 12.1(b) of the Agreement on Safeguards, the Government of the Republic of 
Indonesia submits a notification on finding serious injury or threat thereof, to the domestic industries 
producing "Curtains (Including Drapes), Interior Blinds, Bed Valances, and Other Furnishing Articles " 
and a notification of proposed safeguard measures. This notification contains all pertinent 
information relating to the proposed safeguard measures in accordance with Article 12.2 of the 
Agreement on Safeguards and an offer of consultations pursuant to Article 12.3 of the Ag reement 
on Safeguards.  
A. GENERAL BACKGROUND  
1  INITIATION OF INVEST IGATION  
On 12 September 2019, an application for a safeguard measure was received by the Investigating 
Authority from the Indonesian Textile Association/ Asosiasi Pertekstilan Indonesia  (API) her einafter 
referred as "the Applicant ", against the importation of the product under investigation. After 
examining the properly documented application, the Investigating Authority concluded that there 
was a sufficient evidence to justify the initiation of a  safeguard investigation.  
Subsequently, on 18 September 2019, the Investigating Authority initiated a safeguard investigation 
on the import of "Curtains (Including Drapes), Interior Blinds, Bed Valances, and Other Furnishing 
Articles ". The commencement of the investigation was announced in the Bisnis Indonesia newspaper 
on 18 September 2019 and the Ministry of Trade's website on 19 September 2019.  
(G/SG/N/6/IDN/3 3) 
2  PERIOD OF INVESTIGAT ION 
The period of investigation covers 2016 to 2019 (January -June).  
3  MAJOR PROPORTION  
The total production of the Applicant is 76.91 % of the total domestic production of the Subject Good. 
Therefore, it represents a major proportion as required by Article 4.1(c) of the WTO Agreement on 
Safeguards.  G/SG/N/8/IDN/24 • G/SG/N/10/IDN/24  
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  4  PROVISIONAL  SAFEGUARD MEASURE  
On 5 November 2019 through the Minister of Finance Decree (PMK) No. 163/PMK.010/2019, the 
Government of the Republic of Indonesia stipulates the imposition of provisional safeguard measure 
on the importation of "Curtains (Including Drape s), 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, in accordance with the 2017 
Indonesian Customs Tariff B ook (BTKI), with specific tariff of Rp. 41,083/kg  for 200 days 
commenced from 9 November 2019 to 26 May 2020.  (G/SG/N/7/IDN/ 4/Suppl.1  - 
G/SG/N/11/IDN/ 20/Suppl.1)  
5  VIEWS AND COMMENTS O F THE INTERESTED PAR TIES  
In accordance with Article 3.1 of the WTO Agreement on Safeguards, during the process of 
investigation, the Investigating Authority has provided opportunities to all interested parties, to 
submit their views, evidences, comments, and responses concerning the investigation. In light of 
the aforemen tioned, the Investigating Authority has held public hearings on 1 October 2019 and 
13 February 2020.  
B. INFORMATION ON WHETH ER THERE IS AN ABSOL UTE INCREASE IN IMPO RTS OR AN 
INCREASE IN IMPORTS RELATIVE TO DOMESTIC  PRODUCTION  
In the light to provide evidence whether there is an absolute increase in imports or an increase in 
imports relative to domestic production, the Investigating Authority has analyzed import data of the 
Subject Goods during the period of investigation.  
1  ABSOLUTE INCREASE IN  IMPORTS  
Table 1. Volume of Imports  
Description  Unit Year Semester  Trend  
(16-18) Growth  
(Semester 
18-19) 
  2016  2017  2018  2018  
(Jan-Jun) 2019  
(Jan-Jun)   
Volume  of Imports  Ton 410 1,788  2,500  832 1,340  147 61.01  
Source:  Statistics Indonesia/ Badan Pusat Statistik (BPS).  
The volume of imports increased each year from 410 ton in 2016 to 1,788 ton in 2017 or by 336.21% 
and increased again to 2,500 ton or by 39.87% in 2018. During the period of 2016 -2018 imports 
increased in absolute terms with a trend of 147%.  Likewise, t he volume of imports increased by 
61.01% in the period of 2018 (January -June) to 2019 (January -June) from 832 ton to 1,340 ton.  
2  RELATIVE INCREASE IN  IMPORTS TO TOTAL DO MESTIC PRODUCTION  
Table 2. Volume of Imports, Total Domestic P roduction, and Relative to Total Domestic 
Production  
Description  Unit Year Semester  Trend  
(16-18) Growth  
(Semester 
18-19) 
  2016  2017  2018  2018  
(Jan-Jun) 2019  
(Jan-Jun)   
Volume of Imports  Ton 410 1,788  2,500  832 1,340  147 61.01  
Total Domestic 
Production  Index  100 93.92  95.20  100 75.95  (2.43)  (24.05)  
Imports Relative to 
the Domestic 
Production  Index  100 464.43  640.84  100 211.99  153.07  112.05  
Source:  Statistics Indonesia and as verified by Investigating Authority.  G/SG/N/8/IDN/24 • G/SG/N/10/IDN/24  
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  As seen in Table above, there was a surge increased in imports relative to the national production 
during the investigation period, from 100 indexed points in 2016 to 464.43 indexed points in 2017, 
and continued to increase to 640.84 indexed points in 2018 . During 2016 -2018, imports relative to 
the national production was increased with trend of 153.07%. Imports relative to the national 
production during the period of 2018 (January -June) to 2019 (January -June) also experienced an 
increased by 112.05 % from 100 indexed points to 211.99 indexed points . 
3  IMPORTS FROM MAIN CO UNTRIES  
Table 3. Imports Shares  
Country  2018  
Volume (Ton)  % 
China  2,263  90.53  
Singapore  91 3.64 
Other Countries  146 5.83 
Source:  Statistics Indonesia/ Badan Pusat Statistik (BPS).  
From the table above, the biggest shares of import in 2018 was the People’s Republic of China, with  
share of import accounted for 90.53% followed by Singapore with share of import of 3.64%.  
4  UNFORESEEN DEVELOPME NT 
The increased imports of the Subject Goods from the exporting countries were unforeseeable. This 
is caused by a significant increase in investm ent of the textile industry in China since 2016 which is 
directly related to the newly increased fixed assets of the manufacturers of the Subject Good.  
Based on the China Statistical Yearbook 2017 -2019, investment in the Chinese textile industry sector 
increases every year during the period of 2016 -2018 which caused an increased in the fixed assets 
in the same period. As is known, fixed assets are tangible assets that are used in the production or 
supply of goods, including machinery, production e quipment, factory buildings, and so on, so that 
with the addition of investment and fixed assets have caused the production and production capacity 
of the textile industry in China also experienced an increase.  
Increased production and production capacity as a result of increased investment and fixed assets 
in the textile industry sector in China was an unexpected condition (unforeseen) which indirectly 
caused increased in exports of the Subject Good from China to other countries, including Indonesia.  
C. EVIDE NCE OF SERIOUS INJUR Y OR THREAT THEREOF CAUSED BY INCREASED 
IMPORTS  
In a view to determine the existence of serious injury or threat of serious injury that is caused by 
increased imports, the Investigating Authority has analyzed and made an evaluation of a ll relevant 
factors in an objective and quantifiable natures. The following analyses are based on data provided 
by the Applicant, which has been verified by the Investigating Authority.  
1  EVIDENCE OF SERIOUS INJURY OR THREAT OF SERIOUS INJURY  
Table 4 . National Consumption, Volume of Imports, and Market Shares  
No. Description  Unit Year Semester  Trend  
(16-18) 
2017  Growth  
(Semester 
18-19) 
2016  2017  2018  2018  
(Jan-Jun) 2019  
(Jan-Jun)  
1. National 
Consumption  Index  100.00  149.99  176.23  100.00  102.30  32.75  2.30 
2. Volume  of 
Imports  Ton 410 1,788  2,500  832 1,340  147 61.01  
3. Applicant's 
Domestic Sales  Index  100 102.66  101.04  100 51.21  0.52 (48.79)  
4. Non-Applicant's 
Domestic Sales  Index  100 82.14  85.05  100 84.88  (7.78)  (15.12)  G/SG/N/8/IDN/24 • G/SG/N/10/IDN/24  
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  No. Description  Unit Year Semester  Trend  
(16-18) 
2017  Growth  
(Semester 
18-19) 
2016  2017  2018  2018  
(Jan-Jun) 2019  
(Jan-Jun)  
5. Imports' 
market share  Index  100 290.83  346.20  100 157.39  86.06  24.83  
6. Applicant's 
market share  Index  100 68.44  57.33  100 50.06  (24.28)  (23.01)  
7. Non-Applicant's 
market share  Index  100 54.76  48.26  100 82.97  (30.53)  (1.82)  
Source:  Statistics Indonesia and as verified by the Investigating Authority.  
Based on the table above, it can be concluded that during the investigation period the surge in 
market share of imports has eroded  the domestic market share of both the Applicant and the Non -
Applica nt. 
From 2016 to 2018 national consumption has increased with a trend of 32.75%. Conversely, volume 
of imports  experienced a surge with a trend of 147% in the same period. The increase in the imports 
of the Subject Good resulted in a decline in the market share of the Applicant and Non -Applicant 
with a trend of 24.28% and 30.53%, respectively. Meanwhile, in the sa me period the market share 
of imports increased with a trend of 86.06%. In the period of 2018 (January -June) to 2019 (January -
June) the market share  of import s experienced another increase by 24.83% and resulted in the 
decline  of the Applicant’s and Non -Applicant’s market share to 23.01  indexed points  and 1.82 
indexed points respectively . 
Table 5 . The Applicant's Indicators of Injury  
Unit: Index  
No. Description  Year Semester  Trend  
(16-18) 
2017  Growth  
(Semester 
18-19) 2016  2017  2018  2018  
(Jan-Jun) 2019  
(Jan-Jun) 
1. Production  100 97.65  97.13  100 75.63  (1.44)  (24.37)  
2. Domestic Sales  100 102.66  101.04  100 51.21  0.52 (48.79)  
3. Productivity  100 114.08  123.51  100 81.83  11.14  (18.17)  
4. Utilization 
Capacity  100 97.65  97.13  100 75.63  (1.44)  (6.74)  
5. Loss 100 49.20  (41.91)  (100)  (580.46)  (95.45)  480.46  
6. Employment  100 85.60  78.64  100 92.42  (11.32)  (7.58)  
Source:  As verified by the Investigating Authority.  
As shown in Table 5 , the performance of the applicant can be seen as follows:  
a) Production experienced a decrease with a trend of 1.44% from 100 indexed points in 2016 to 
97.65 indexed points in 2017 and decreased again to 97.13 indexed points in 2018. Likewise, 
production experienced a decrease in the period of 2018 (January -June) from 100 indexed point 
to 75.63 indexed points in the period 2019 (January -June).  
b) Domestic Sales relatively stable with a trend of 0.52% during 2016-2018, from 100 indexed 
points in 2016 to 102.66 indexed points in 2017 and then decreased to 101.04 indexed points 
in 2018. As oppose, in the period of 2018 (January -June) the domestic sales experienced a 
significant decrease from 100 indexed points to 51.21 indexed points in the period of 2019 
(January -June).  
c) Productivity in 2016 was 100 indexed points,  increasing to 114.08 indexed points in 2017 and 
123.51 indexed point in 2018. During 2016 -2018 the applicant's productivity has increased with 
a trend of 11.14%. Productivity seems to have increased; this is due to the reduction in the 
number of employees  with a trend of 11.32% during 2016 -2018. However, in the period of 2018 
(January -June) productivity decreased from 100 indexed points to 81.83 indexed points in the 
period of 2019 (January -June).  G/SG/N/8/IDN/24 • G/SG/N/10/IDN/24  
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  d) Utilization c apacity experienced a decrease during 2016 -2018 with a trend of 1.44% from 100 
indexed points in 2016 to 97.65 indexed points in 2017 and 97.13 indexed points in 2018. On 
the contrary, in the  period of 2018 (January -June) u tilization c apacity decreased significantly 
from 100 indexed points to 75.63 in dexed points in the period of 2019 (January -June).  
e) Applican t’s Losses experienced a decrease during 2016 -2018 with a trend of 95.45%. The 
biggest financial losses occurred in 2019  (January -June)  amounting to minus 580.46 indexed 
points or by 480.46% compar ed to the previous year. The loss es occurred since 2018 was 
because the Applicant had to s ell their product below production costs as a result of pressures 
from imported goods that flooded the domestic market.  
f) The Applicant’s employment significantly decreased from 100 indexed points In 2016 to 85.60 
indexed points in 2017 and 78.64 indexed point s in 2018. Moreover, the Applicant’s employee 
experienced further decreased from 100 indexed points in the period of 2018 (January -June) to 
92.42 indexed points in the period of 2019 (January -June).  
g) Based on the explanation above, it can be concluded that during the investigation period, the 
Applicant experienced a threat of serious injury  based on the Applicant’s performance that 
indicated a downward trend in production, utilization capacity, employment, and increased 
financial losses.  
2  OTHER FACTORS THAT M AY CONTRIBUTE TO INJ URY 
In order to ensure that the serious injury or threat of serious injury is only caused by increased 
imports, the Investigating Authority has examined the following other known factors:  
a) Technology  
Based on the results of the investiga tion, the Applicant already has the latest technology in producing 
the Subject Good. This argument is supported by the fact that the Applicant's machinery is able to 
produce sophisticated goods for the consumers . This shows that the threat of a serious inj ury 
suffered by the Applicant is not caused by technology.  
b) Quality  
The quality of goods produced by the Applicant has met the international standards such as OEKO -
TEX certificate. Thus, in terms of quality, goods produced by the Applicant are able to compete with 
imported goods because they already met the internationally recognized standards.  
c) Production  Capacity  
Table 6 . Percentage of the National Consumption compared to the Domestic Production 
Capacity  
Description  Year Semester  
2016  2017  2018  2018  
(Jan-Jun) 2019  
(Jan-Jun) 
National Consumption to the 
Domestic Production Capacity (%)  33.18  49.76  58.46  47.88  48.98  
Source:  Statistics Indonesia and as verified by the Investigating Authority.  
As shown in Table above, national consumptions during 2016 to 2019 (January -June) are less than 
the domestic production capacity. Therefore, the domestic production capacity is more than enough 
to meet the national consumption. In fact, a threat of serious injury suffered by the Applicant is not 
because the idle in production capacity, but because of the imported goods have flooded the 
domestic market resulting in many production capacities not fully utilized.  
Based on the facts of a) to c) above, it can be concluded that  during the period of investigation  there 
were no other factors that caused a threat of serious injury to the Applicant besides increased volume 
of imports of the Subject Goods.  G/SG/N/8/IDN/24 • G/SG/N/10/IDN/24  
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  3  CAUSAL LINK  
The Investigating Authority has examined all  relevant  factors having a bearing in the Applicant 
situation, and came into a conclusion that threat of serious injury suffered by the Applicant mainly 
caused by significant increased volume of imports and not due to the other factors, as follows:  
a) There was a surg e increase of Subject Good in absolute terms in 2016 -2018 with a trend of 
147%. Likewise, t he volume of imports increased by 61.01% in the period of 2018 (January -
June) to 2019 (January -June).  
b) There was a surge increase of Subject Good in relative to domes tic production  in 2016 -2018 
with a trend of 153.07 %. Likewise, t he relative increase in imports to domestic production  
increased by 112.05 % in the period of 2018 (January -June) to 2019 (January -June).  
c) Imports ' market share has increased with a trend of 86. 06% in 2016 -2018 and in the period of 
2018 (January -June) to 2019 (January -June) the imports’ market share increased by 24.83%.  
d) The Applicant’s market share has decreased with a trend of 24.28% and the Non -Applicant's 
market share has also decreased with a  trend of 30.53% during 2016 -2018. Moreover, in the 
period of 2018 (January -June) to 2019 (January -June) the market share of the Applicant and 
non-Applicant experienced another decrease . 
e) Downward trends in production , utilization capacity, employment, and increased losses.  
f) There were no other factors  that caused a threat of serious injury to the Applicant besides 
increased volume of imports of the Subject Goods.  
D. DESCRIPTION OF THE P ROPOSED SUBJECT GOOD S 
"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.  
E. DESCRIPTION OF THE P ROPOSED MEASURE  
In a view of the aforementioned findings, a safeguard measure has been proposed in form of s pecific 
tariff duty with description, proposed date of introduction, and expected duration of the measure as 
follow:  
Table 7 . The Proposed on Safeguard Measure  
Year Measure  
Period I  
(27 May 2020  – 8 November 2020)  Rp. 41,083 /Kg  
Period II  
(9 November 2020  – 8 November 2021)  Rp. 34,961 /Kg  
Period III  
(9 November 2021  – 8 November 2022)  Rp. 28,839 /Kg  
In a view of the aforementioned conclusion of the causal link, the Investigating Authority has 
proposed to the Government of the Republic of Ind onesia to impose a safeguard measure on the 
importation of the Subject Goods for three periods . 
The imposition of the safeguard measure will be carried out in accordance with the Article 2.2 and 
Article 9 of the WTO Agreement on Safeguards.  
The non -confide ntial version of the Final Report of this investigation, can be found in the website of 
the Indonesian Safeguard Committee: www.kppi.kemendag.go.id . G/SG/N/8/IDN/24 • G/SG/N/10/IDN/24  
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  F. CONSULTATIONS  
Members who have a substantial interest of 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 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 the Republic of 
Indonesia is open for consultation in order to provide opportunities for those Members, consultation 
is scheduled to be held no later than 20 March 2020.  
The contact information for correspondence is:  
DIRECTORATE OF MULTILATER AL NEGOTIATION, 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.multil ateral.ppi @kemendag.go.id . 
 
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