G/SG/N/8/IDN/27/Suppl.2  
 
9 November 2023 
(23-7582) Page: 1/5 
Committee on Safeguards  Original: English  
 
 
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON  
SAFEGUARDS ON TAKING A DECISION TO APPLY A SAFEGUARD MEASURE  
INDONESIA  
Carpets and Other Textile Floor Coverings  
Supplement  
The following communication, dated and received on 9 November  2023, is being circulated at the 
request of the delegation of Indonesia . 
 
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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 of the investigation 
findings concerning the extension of a safeguard measure against the importation of Carpets and 
Other Textile Floor Coverings.  
1  EVIDENCE THAT THE SAFEGUARD MEASURE CONTI NUES TO BE NECESSARY TO 
PREVENT OR REMEDY SERIOUS INJURY OR THREAT THEREOF AND THAT THE INDUSTRY 
CONCERNED IS ADJUSTING  
The Government of the Republic of Indonesia initiated an investigation on the extension of a 
safeguard measure on 18 August 2023  (G/SG/N/6/IDN/3 5/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 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 
(importers, exporters, and other interested parties) 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 developments of imports, and other 
relevant data included in its assessment, the Investigat ing Authority assessed the data for the 
period  2020-2022 ( "the investigation period "). G/SG/N/8/IDN/27/Suppl.2  
 
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  Description  Unit Year  Changes (%)  Trend (%)  
2020  2021  2022  20-21 21-22 20-22 
Production  Index  100 102.9  99.7 2.89 (3.09)  (0.15)  
Domestic Sales  Index  100 104.5  97.2 4.51 (6.97)  (1.40)  
Productivity  Index  100 104.4  103.5  4.41 (0.90)  1.72 
Utilization 
Capacity  Index  100 102.9  99.7 2.89 (3.09)  (0.15)  
Profit  Index  100 77.9 77.8 (22.14)  (0.03)  (11.77)  
Employment  Index  100 98.5 96.4 (1.46)  (2.22)  (1.84)  
Inventory  Index  100 97.6 109.4  (2.43)  12.12  4.59 
Source: Verification Result  
a) The Applicant's production decreased with a trend of 0.15% during the investigation period. 
The Applicant 's production increased by 2.89% from 100 indexed point in 2020 to 
102.9  indexed point in 2021 due to an increase in national consumption. Meanwhile, the 
Applicant's production decreased by 3.09% from 102.9 indexed point in 2021 to 
99.7 indexed point in 2022.  
b) The Applicant's domestic sales decreased with a trend of 1.40% during the investigation 
period. The Applicant 's domestic sales increased by 4.51% from 100 indexed point in 2020 
to 104.5 indexed point in 2021. However afterward, the Applicant's domestic sales decreased 
by 6.97% from 104.5 indexed point in 2021 to 97.2 indexed point in 2022, due to the flood 
of imported goods from Viet  nam, Malaysia, and Thailand which were previously exempted 
from the safeguard measure imposition.  
c) The Applicant strives to maintain its productivity levels and achieve a trend increase of 
1.72%, by reducing the employment by 1.46% and 2.22 in 2021 and 2022, respectively.  
d) During the investigation period, the Applicant 's utilization capacity  decreased with a trend of 
0.15%. The Applicant 's utilization capacity increased by 2.89% from 100 inde xed point in 
2020 to 102.9 indexed point in 2021. Furthermore, the Applicant's utilization capacity 
decreased by 3.09% from 102.9 indexed point in 2021 to 99.7 indexed point in 2022.  
e) During the investigation period, the Applicant continued to experience a decline in profits 
with a trend of 11.77%. The decrease in profit was due to an increase in imports of the 
subject good in the domestic market.  
f) During the investigation period, the Applicant's employment decreased with a trend of 
1.84%. This reduction in e mployment was due to the Applicant 's effort to achieve cost 
efficiency.  
g) During the investigation period, the Applicant 's inventory increased with a trend of 4.59%. 
The Applicant 's inventory decreased by 2.43% from 100 indexed point in 2020 to 
97.6 indexed point in 2021. Meanwhile, the Applicant's inventory increased by 12.12% from 
97.6 indexed point in 2021 to 109.4 indexed point in 2022.  
Description  Unit Year  Changes (%)  Trend 
(%) 
2020  2021  2022  20-21 21-22 20-22 
National Consumption  Index  100 107.9  112.7  7.99 4.34 6.15 
Market Share of Imports  Index  100 51.4 133.4  (48.61)  159.58  15.50  
Market Share of Applicant  Index  100 96.8 86.3 (3.22)  (10.84)  (7.11)  
Market Share of Non - Applicant  Index  100 128.1  133.4  28.12  4.11 15.49  
Market Share of Applicant and 
Non-Applicant  Index  100 104 97.2 4.05 (6.57)  (1.40)  
Source: Verification Result  G/SG/N/8/IDN/27/Suppl.2  
 
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During the investigation period, the Applicant's market share decreased with a trend of 7.11% and 
both the Non -Applicant's market share and import 's market share increased with a trend of 15.49% 
and 15.50% respectively. Even though the Non -Applicant 's market share has increased, the 
consolidated data of both the Applicant 's and Non -Applicant 's market share has decreased with a 
trend of 1.40% during the  investigation period.  
1.2  Evidence that the industry concerned is adjusting  
The domestic industry has conducted adjustment plans aiming at increasing its product innovation, 
installing new machinery production, and increasing employment skills. The realizatio n of the 
structural adjustment program that has been carried out by the Applicant is as follows:  
 
Description  Target  Realization  
The Structural Adjustment Program  100%  48.66%  
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  m² 2,107,473  1,169,538  3,167,650  (44.51)  170.85  22.60  
National Production  Index  100 105 100 5.11 (4.81)  0.03 
Imports Relative to 
National Production  Index  100 53 150 (47.20)  184.53  22.57  
Source: Statistics Indonesia, and Verification Result  
Based on the table above, both imports in absolute and relative terms to the national production 
experienced an increase during the period of 2020 -2022, with trends of 22.60% and 22.57%, 
respectively  
3  PRECISE DESCRIPTION OF THE PRODUCT INVOLVED  
"Carpets and other textile floor coverings under HS Codes Chapter 57 consists of 64 
8-digit HS numbers under Indonesia Customs 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 a specific duty.  
 
6  PROPOSED DATE OF INTRODUCTION OF THE MEASURE  
The proposed extens ion of the safeguard measure will come into effect on 17 February 2024.  
 
7  EXPECTED DURATION OF THE MEASURE  
The expected duration of the proposed extension of the safeguard measure is three years.  
 G/SG/N/8/IDN/27/Suppl.2  
 
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  8  PROPOSED DATE FOR THE REVIEW  
Not Applicable.  
9  EXPECTED TIMETA BLE FOR PROGRESSIVE LIBERALIZATION OF THE MEASURE  
The measure will continue being progressively liberalized, at regular intervals, at the beginning of 
each period of application as follows:  
Period  Safeguard Duty (Rp/m2) 
1st Year  
(17 February 2024 - 16 February 2025)  Rp 74,461/m2  
2nd Year  
(17 February 2025 - 16 February 2026)  Rp 71,058/m2  
3rd Year  
(17 February 2026 - 16 February 2027)  Rp 67,811/m2  
 
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 the investigation findings concerning the extension of 
safeguard measures against the importation of Carpets and other textile floor coverings. 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  
Provide d in item 1.2.  
 
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 17 February 2021, the 
Government of the Republic of Indonesia notified the Committee on Sa feguards regarding the 
decision to impose safeguard measures on the imports of Carpets and other textile floor coverings  
(G/SG/N/8/IDN/27/Suppl.1  - G/SG/N/10/IDN/27/Suppl.1  - G/SG/N/11/IDN/24 ). 
11.3  Duration of the measure from initial application till the date at which it will be 
extended  
The initial definitive safeguard measure is imposed for 3 years, from 17 February 2021 until 
16 February 2024. The extension of the safeguard measure is proposed to be imposed for 3 years, 
until 16 February 2027.  
 
11.4  Precise description of the measure in place prior to the date of extension  
The initial definitive measure was notified on 17 February 2021 ( G/SG/N/8/IDN/2 7/Suppl.1  - 
G/SG/N/10/IDN/27/Suppl.1  - G/SG/N/11/IDN/24 ). 
12  INFORMATION RELATING TO EXPORTING MEMBERS  THE MAJOR EXPORTING 
MEMBERS OF IMPORTS OF THE PRODUCT INVOLVED  
The main exporting co untries of the product concerned are Viet Nam, Türkiye , Malaysia, Japan, the 
People's Republic of China, and Thailand.  
 G/SG/N/8/IDN/27/Suppl.2  
 
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  12.1  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 nam es 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 f rom 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 Safeguards 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 virtually no later than 1 December 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: https://bit.ly/DokumenPe nyelidikanKPPI . 
 
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