G/SG/N/13/IDN/1  
G/L/1095  
 
28 November 2014  
(14-6926)  Page: 1/4  
 Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER ARTICL E 12.5 OF THE AGREEMENT 
ON SAFEGUARDS OF THE RESULTS OF A MID-TERM 
REVIEW REFERRED TO IN ARTICLE 7.4 
INDONESIA  
(Articles of Iron or Steel Wire) 
The following communication, dated 26 November 2014, is being circulated at the request of the 
Delegation of Indonesia. 
 
_______________ 
 
 
This notification is made pursuant to paragrap h 5 of Article 12 of the Agreement on Safeguards, 
which sets forth that mid-term reviews, under para graph 4 of Article 7, shall be notified to the 
Council for Trade in Goods, in conformity with the format established in document G/SG/1/Rev.1, 
dated 5 November 2009.  
1. Specify the measure and the product subject to the measure for which the mid-
term review was conducted, and provide refe rence to the WTO document that notified 
the safeguard measure subject to the review  
The measure is a tariff on imports of Articles of Iron or Steel Wire. The duty payable was set with 
the aim of preventing a threat of serious injury  to the Applicant. Further details regarding the 
measure are set out in the notification on definitive measures: 
G/SG/N/10/IDN/11/Suppl.1-G/SG/N/11/IDN/11 dated 19 December 2012 The Subject Good under 
investigation is Articles in the form of boxes, cylinders, or mattress made from iron or steel wire with thickness diameter of minimum 2 mm up to ma ximum 5 mm, in which the iron or steel wire is 
double coil one to another yielding hexagonal circles with diameter of minimum 50 mm up to 
maximum 120 mm, and plated with zinc or plastic poly vinyl chloride (PVC), which falls under 
HS code Ex. 7326.20.90.00.  
2. Provide the dates of initiation and conclusion of the review 
 On 14 April 2014, the Indonesian Safeguards  Committee (Komite Pengamanan Perdagangan 
Indonesia/KPPI) hereinafter referred as "Investigating Authority" initiated an investigatory process 
relating to the definitive safeguard measure on imports of Articles of Iron or Steel Wire which had been imposed on 20 November 2012. The review was concluded on 19 November 2014. 
 
3. Describe the results of the review, prov iding some detail on the basis for reaching 
those results  
In order to review the situation of the domestic  industry after the imposition of the safeguard 
measure, the analysis conducted by the Investigating Authority focused on data related to the period between the calendar year of 2011 until the most recent data on January to June 2014, 
considering that safeguard measure has been in force as of 20 November 2012. 
 G/SG/N/13/IDN/1 • G/L/1095 
 
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  3.1. Imports 
 3.1.1. Volume of Imports  
TABLE 1: ABSOLUTE IMPORTS 
Description Years 
2011 2012 2013 2013 
(Jan-Jun) 2014  
(Jan-Jun) 
Volume (Ton) 5,696 6,390 5,560 2,729 1,941 
Change (%)  12 (13)  (29) 
Source: Indonesian Statistics (BPS) 
 
From the Table 1 above, it is shown that the vo lume of imports only increased with the trend 
of 1% in 2011 to 2013. The volume of imports after the imposition of the measure was decreased in 2013 by 13% and during the period of Janua ry-June 2013 imports showed a decline by 29%, 
compared to the same period in 2014. 
 
3.1.2. Imports by Main Countries  
TABLE 2: IMPORTS BY MAIN COUNTRIES 
Unit: Ton 
Countries Years 
Trend 
(11-13) 2011 2012 2013 2013 
(Jan-Jun) 2014 
(Jan-Jun) 
People's Republic of China (PRC) 2,402 4,321 4,676 2,363 1,269 39.5 
Singapore 2,795 179 344 111 359 (64.9) 
Other Countries 499 1,890 540 254 314 4.0 
Total 5,696 6,390 5,560 2,729 1,941 (1.2) 
Source: Indonesian Statistics (BPS) 
 
During the period of 2011-2013, imports from PRC increased significantly with the trend of 39.5%. 
Imports from PRC increased rapidly in 2012 by 80%, and after the imposition of the measure 
in 2013 also still increased by 8%. During the fi rst half year 2014 the amount of imports showed 
some decreased by 46.3% compared to the same period in 2013. While volume of imports from 
Singapore decreased significantly in 2012 by 93 .6% and the trend of imports from Singapore 
during 2011 to 2013 tend to decrease with the average of 64.9%. Import share of Singapore 
in 2013 is 6.2%.  3.2. Applicant's Performance 
 
In order to conduct midterm review, the Investigating Authority examined data and information available having a bearing on the actual condit ion of the Applicant. As the result of the 
examination, the Investigating Authority found the following evidences. G/SG/N/13/IDN/1 • G/L/1095 
 
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  TABLE 3: DOMESTIC SALES, PRODUCTION, AND PROFIT 
Unit: Index 
Source: Applicant 
 
Domestic sales experienced a decreased in 2013 by 18 points compared to the previous year and 
at the same time the production also decreased by 16 points. During the first half of 2014 the domestic sales and production is predicted to have improved as shown in the table above.  
 
The decrease in domestic sales and production in 2013 led to a significant decrease in profits for the year, although in 2014 profits is predicted to increase.  
TABLE 4: PRODUCTIVITY, PRODUCTION CAPACITY, AND UTILIZATION CAPACITY  
Unit: Index 
Source: Applicant 
 
Productivity declined in 2013, and productivity co ntinued to decline in the first half year of 2014. 
This is due to the decline in production in 2013, as sales in the year also decreased.  
The number of employee remains constant becaus e the domestic industry has to maintain 
employee to keep the production running,  despite the decline of its production. 
 
TABLE 5: PROFIT 
Unit: Index 
Source: Applicant 
 
Although the safeguard measure has been in forc e by the end of 2012, but the domestic industry 
experienced a decrease in profit by 58 points in  2013 compared to the previous year. The profit 
tends to decrease in the first half of 2014 as shown in the table above. No. Description  Years Change 
12-13 
(%) Trend  
11-13 
(%) 2011  2012 2013 2014  
(Jan-Jun) 
1. Domestic Sales 100 124 106 74 (14.4) 2.8 
2. Production 100 119 103 78 (13.0) 1.7 
3. Profit 100 154 96 100 (37.3) (1.9) 
No. Description  Years Change 
12-13 
(%) Trend 
11-13 
(%) 2011  2012 2013 2014  
(Jan-Jun) 
1. Productivity 100 106 85 77 (20.3) (8.0) 
2. Production Capacity 100 100 100 100 - - 
3. Utilization Capacity 100 121 104 79 (13.8) 2.1 
4. Employee 100 111 100 100 (10.0) 0 
Description  Years Change 
12-13 
(%) Trend 
11-13 
(%) 2011  2012 2013 2014 
(Jan-Jun) 
Profit 100 154 96 67 (37.3) (1.9) G/SG/N/13/IDN/1 • G/L/1095 
 
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  TABLE 6: INVENTORIES 
Unit: Index 
Source: Applicant 
 
Inventories are relatively stable in the period of 2011 to 2013 but it increased during the first half of 2014. This is increased in inventories is due to the significant decreased in sales.  
 
3.3 Restructuring  The restructuring efforts made by the domest ic industry were examined in the review. 
 
1. For the purpose of increasing sales and also to meet the national consumption, the domestic 
industry expanding their distribution channels to cover more area in order to expedite the 
supply in the domestic market.  
2. The domestic industry expand its distribution network by develop their warehouse spread 
over the strategic business market in Indonesia such as Medan, Surabaya, and Sulawesi.  
3. To improve the production efficiency and also  the skill of human resources in the production 
line and after sales service, the domestic indu stry conducted a regular training to employee 
in the production field. 
 
3.4. Analysis of the Findings 
 Considering that the safeguard measure has been in force as of 20 November 2012, the volume of 
imports experienced a decreased by 13% in 2013, which in the same period the domestic sales, 
production, productivity, capacity utilization, and pr ofit were also decreased. This situation shows 
that the Applicant still unable to recover its performance from the threat of serious injury.  
 
3.4.1. Assesment of the effect of the measures  Based on the analysis of imports, Applicant's perf ormance, and Applicant's structural adjusment, it 
can be concluded that the safeguard duty was effective to decrease the volume of imports. This 
decreasing in the volume of imports is expected to be continued in subsequent years so that the 
Applicant could recover from the threat of serious injury and could continue their structural 
adjustment's programs. 
 3.4.2. Assesment of the necessity to co ntinue the application of the measure 
 
Based on 3.4.1 above, the Investigating Authority recommend that the imposition of the safeguard 
duty is still necessary to allow further recovery of the domestic industry.  
4. Conclusion 
 Based on the result of the Midterm Review, the investigating authority recommend that the 
imposition of safeguard duty is still necessary and the pace of liberalization remains unchanged. 
  
INDONESIAN SAFEGUARDS COMMITTEE 
(KOMITE PENGAMANAN PERDAGANGAN INDONESIA - KPPI) 
Jl. M.I. Ridwan Rais No.5, Building I, 5
th floor, Jakarta 10110 
Telephone / Facsimile: (62-21) 385 7758 
E-mail: mailto:kppi@kemendag.go.id  
 
__________  Description  Years Change 
12-13 
(%) Trend 
11-13 
(%) 2011  2012 2013 2014 
(Jan-Jun) 
Inventories 100 96 97 112 0.9 (1.6)