G/SG/N/8/IDN/29/Suppl.2  
G/SG/N/10/IDN/29/Suppl.2  
G/SG/N/11/IDN/27  
 
11 September  2023 
(23-6000) Page: 1/5 
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  
Cigarette Paper and Plug Wrap Paper Non-Porous  
The following communication, dated and received on 6 September 2023, is being circulated at the 
request of the delegation of Ind onesia. 
 
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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 the investigation findings 
concerning the extension of a safeguard measure against the importation of Cigarette Paper and 
Plug Wrap Paper Non-Porous . 
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 adjusting  
The Government of the Republic of Indonesia initiated an investigation on the extensio n of a 
safeguard measure on 23 June  2023 (G/SG/N/6/IDN/3 7/Suppl.1 ). The scope of the investigation 
was to decide whether the safeguard mea sure 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 membe r 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 Aut hority 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 Investigating Authority assessed t he data for the 
period  2020-2022 ('the investigation period').  
Description  Unit Year  Changes (%)  Trend (%)  
2020  2021  2022  20-21 21-22 20-22 
Production  Index  100 91 101 (9.22)  11.24  0.49 
Domestic Sales  Index  100 87 95 (13.17)  9.86 (2.33)  
Productivity  Index  100 101 113 1.28 11.80  6.41 
Utilization 
Capacity  Index  100 91 101 (9.22)  11.24  0.49 G/SG/N/8/IDN/29/Suppl.2 • G/SG/N/10/IDN/29/Suppl.2 • G/SG/N/11/IDN/27  
 
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  Description  Unit Year  Changes (%)  Trend (%)  
2020  2021  2022  20-21 21-22 20-22 
Profit/Loss  Index  (100)  (715)  (820)  (614.94)  (14.72)  (99.49)  
Employment  Index  100 90 89 (10.37)  (0.50)  (5.56)  
Source: Verification Result  
a) Despite the increasing production trend of the Applicant from 2020 to 2022, the da ta indicated  
a reduction in Applicant 's production from 2020 to 2021. The subsequent increase in production 
observed from 2021 to 2022  was attributed to the fact that the Applicant received additional 
orders from customers  as the positive impact of the imposition of safeguard duties.  
b) Domestic sales of the Applicant  decreased with a trend of 2.33%. From 2020 to 2021, the 
Applicant 's domestic sales decreased by 13.17%, while from 2021 to 2022, domestic sales 
increased by 9.86% due to the positive impact of the imposition of safeguard duty . Although 
the Applicant was able to increase its sales in 2022, the Applicant 's market share decreased 
due to order cancellation  from customers.  
c) The Applicant strives to maintain its productivity levels and achieve a trend increase of 6.41%, 
by reducing the employment by 10.37% and 0.50% in 2021 and 2022 , respectively . 
d) During the investigation period, the utilization capacity  of the Applicant increased with a trend 
of 0.49%. The utilization capacity  decreased from 2020 to 2021, and then increased  from 
2021 to 2022 . 
e) During the investigation period, the Applicant  continued to experience significant losses with a 
trend of 99.49 %. This losses  were caused by an increase in raw material costs and factory 
overhead costs, which covered 7 6.5% of total operational costs. This was due to the fact that 
the Applicant  had to sell their product at a price below the production cost.  
f) The number of employment decreased with a trend of 5.56% during the investigation period. 
From 100 point index in 2020 , it decreased to 90 point index  in 2021 and 89 point index in  2022.  
This reduction in employment was due to the Applicant 's effort to achieve cost efficiencies.  
g) During the investigation period, the Applicant continued to suffer significant financial losses, 
with a trend of 99.49%. These  losses were due to an increase  in raw material costs and 
overhead factory costs, both of which accounted for  76.5% of the total operating costs, and the 
Applicant was forced to sell at a price below the operating cost during the investigation  period.  
Desc ription  Unit Year  Changes (%)  Trend 
(%) 
2020 2021 2022 20-21 21-22 20-22 
National Consumption  Index  100 91 110 (8.80)  20.83  4.98 
Market Share of Imports  Index  100 156 144 55.73  (7.33)  20.13  
Market Share of Applicant  Index  100 95 87 (4.80)  (9.08)  (6.96)  
Market Share of 
Non-Applicant  Index  100 58 87 (41.92)  49.35  (6.86)  
Source: Verification Result  
During the investigation period, national consumption experienced an upward trend of 4.98%. 
Meanwhile, the market share of the Applicant and Non -Applicant declined  with a trend of 
6.96%  and 6.86% during the investigation period . On the contrary, the share of imports in the 
same period experienced an increase with a trend of  20.13%.  G/SG/N/8/IDN/29/Suppl.2 • G/SG/N/10/IDN/29/Suppl.2 • G/SG/N/11/IDN/27  
 
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  1.2.  Evidence that the industry concerned is adjusting  
The domestic industry has conducted adjustment plans aiming at increasing its product innovation , 
raw material innovation, automation of machinery production, market expansion, and cost efficiency . 
The realization of the structural adjustment program that has been carried out by the Applicant is 
as follows:  
Description  Target  Realization  
The Structural Adjustment Program  100%  64.93% 
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  Ton 7,896 11,215 12,558 42.03  11.97 26.11 
National Production  Index  100 83 95 (17.20)  14.44  (2.66)  
Imports Relative to 
National Production  Index  100 172 168 71.54  (2.16)  29.55  
Source: Statistics Indonesia , Indonesia Customs  and Min istry of Industry  
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 26.11% and 29.55%, 
respectively . 
3. Precise description of the product involved  
"Cigarette Paper and Plug Wrap Paper Non -Porous ", under the Indonesia Harmonized System (HS.) 
Code: 4813.20 .21, 4813.20.23, 4813.20.31, ex4813.20.32, 4813.90.11, ex 4813.90.19, 4813.90.91 
and ex 4813.90.99 " in accordance with Indonesian 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  extension of the safeguard measure will come into effect on 30 November  2023. 
7. Expected duration of the measure  
The expected  duration of the proposed extension of the safeguard measure is three years.  
8. Proposed date for the review  
Not Applicable . G/SG/N/8/IDN/29/Suppl.2 • G/SG/N/10/IDN/29/Suppl.2 • G/SG/N/11/IDN/27  
 
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  9. Expected t imetable 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  (Rupiah/Ton ) 
1st Year ( 30 November  2023 - 29 November  2024) 3,923,900  
2nd Year ( 30 November 2024 - 29 November 2025) 3,885,850  
3rd Year ( 30 November 2025 - 29 November 2026) 3,847,800  
 
10. If the notification relates only to a finding of serious injury or threat thereof, and  
does not relate to a decision to appl y 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 Cigarette Paper  and Plug Wrap Paper Non -Porous . 
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  
Provided in item 1 .2. 
11.2.  Reference to the WTO document that notif ied the ini tial application of the measure  
Pursuant to Article 12.1(c) of the WTO Agreement on Safeguards, on 8 December 2021 , The 
Government of the Republic of Indonesia notified the Committee on Safeguards regarding the 
decision to impose safeguard measu res on the imports of Cigarette Paper and Plug Wrap Paper 
Non-Porous  (G/SG/N/8/IDN/2 9/Suppl.1  - G/SG/N/10/IDN/ 29/Suppl.1 ). 
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 2 years, from 30 November  2021 until 
29 November  2023. The extension of the safeguard measure is proposed to  be imposed for 3 years, 
until 29 November  2026. 
11.4.  Precise description of the measure in place prior to the date of extension  
The initial definitive measure was notified on 8 December  2021 (G/SG/N/ 8/IDN/ 29/Suppl.1  - 
G/SG/N/1 0/IDN/ 29/Suppl.1 ). 
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  Viet Nam, Austria, the People's Republic 
of China, Spain , and the Republic  of Korea .  
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, t he names of such exporting 
Members and reasons for non -application of the measure  
Not applicable . G/SG/N/8/IDN/29/Suppl.2 • G/SG/N/10/IDN/29/Suppl.2 • G/SG/N/11/IDN/27  
 
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  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 d ays 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 s the Government of the Republic of 
Indonesia  is open for consultation in order to provide opportunities for those Members, consultation 
is sch eduled to be held virtually no later than 22 September  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/DokumenPenyelidikanKPPIKertasSigaret . 
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