G/SG/N/6/IDN/25/Suppl.2  
 
25 August 2017  
(17-4529) Page: 1/2 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER A RTICLE 12.1(A) OF TH E AGREEMENT ON  
SAFEGUARDS ON INITIA TION OF AN INVESTIGA TION AND  
THE REASON FOR IT  
INDONESIA  
(I and H Sections of Other Alloy Steel)  
Supplement  
The following communication, dated 24 August 2017, is being circulated at the re quest of the 
Delegation of Indonesia . 
 
_______________  
 
 
Pursuant to Article 7.2 and Article 12.1(a) of the WTO Agreement on Safeguards, the Republic of 
Indonesia hereby wishes to notify the Committee on Safeguards that the Indonesian Safeguards 
Committee (Komite Pengamanan Perdagangan Indonesia/KPPI) hereinafter referred as 
"the Investigating Authority" has initiated an investigation on the extension of Safeguard Measure 
on importation of I and H Sections of Other Alloy Steel  under HS . Code ex. 7228.70.10.00 an d 
ex. 7228.70.90.00 . 
 
1. The date of initiation  
The investigation regarding the extension of the safeguards measure was initiated on 
18 August  2017. 
 
2. Subject good  
I and H Sections of Other Alloy Steel  under HS . Code ex. 7228.70.10.00 an d ex. 7228.70.90.00.  
 
3. Period of Investigation  
May 2014 – April 2017.  
 
4. Reference to the WTO document containing the most recent Article 12.1(b) and 
Article 12.1(c) notification  
The WTO Document containing the most recent Article 12.1(b) and Article 12.1(c) n otification is  
G/SG/N/8/IDN/17/Suppl.1 -G/SG/N/10/IDN/17/Suppl.1 -G/SG/N/11/IDN/15, dated  5 February 2015.  
 
5. Reasons for initiation of investigation procedure  
The extension of safeguard measure s on the importation of I and H Sections of Other Alloy Steel  
under HS . Code ex. 7228.70.10.00 and ex. 7228.70.90.00 has been requested  by PT. 
Gunung  Garuda hereinafter referred as " the Applicant ".  
 
 G/SG/N/6/IDN/25/Suppl.2  
 
- 2 - 
 
  The application was based on the claim that the adjustment plan has not been fully accomplished , 
as a result of a si gnificant amount of imported goods which showed an increase during the period 
of May 2016 - April 2017 compared to the previous year. Therefore, the safeguard measures 
remained necessary to prevent domestic industry from the serious injury. 
 
Based on data from STATISTICS INDONESIA, the volume of imported goods under investigation is 
as follows.  
 
Imports  
(Ton)  1st Period  2nd Period  3rd Period  
111.374,73  39.580,62  49.257,88  
Notes:  1st Period = May 2014 – April 2015 . 
2nd Period = May 2015 – April 2016 . 
3rd Period = May 2016 – April 2017 . 
 
The increased import has impacted to the applicant’s economic indicators, such as production, 
domestic sales, employment, stock, capacity utilization, and profit/loss, as seen in the table below.  
 
Description  Unit 1st Period  2nd Period  3rd Period  Growth  Trend  
1st Period – 
2nd Period  2nd Period  – 
3rd Period  
Production  index  100 111 108 11 -3 4 
Domestic 
Sales  index  100 111 108 11 -3 4 
Employment  index  100 98 91 -2 -7 (5) 
Market Share 
of Applicant  index  100 119 116 19 -3 8 
Capacity 
Utilization  index  100 111 108 11 -3 4 
Profit/Loss  index  -100 140 73 240 -67 N/A 
 
The investigation has been initiated to determine whether the continued application of safeguard 
measure is warranted.  
 
6. Further information  
Parties who have substantial interests and wish to be considered as interested parties in this 
investigation, should submit a written request within a period of 15 days from the date of the 
initiation, and addressed to:  
 
INDONESIAN SAFEGUARDS COMMITTEE  
(KOMITE PEN GAMANAN PERDAGANGAN INDONESIA - KPPI)  
Jl. M.I. Ridwan Rais No.5, Building I, 5th floor, Jakarta 10110  
Telephone / Facsimile: (62 -21) 385 7758  
E-mail: kppi@kemendag.go.id  
 
all submissions made by interested parties must be submitted in writing  and 
in electronic format, and must indicate the name, address,  
e-mail address, telephone and fax numbers of the interested party.  
 
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