WORLD TRADE  
ORGANIZATION  G/SG/N/8/IDN/6 
G/SG/N/10/IDN/6 
G/SG/N/11/IDN/5 
12 April 2011 
 (11-1812) 
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 
 
NOTIFICATION PURSUANT TO ARTICLE 12.1(C) 
OF THE AGREEMENT ON SAFEGUARDS 
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
 
INDONESIA 
 
(Certain Stranded wire, ropes and cables
) 
  
 The following notification, dated 10 April 2011, is being circulated at the request of the 
Delegation of Indonesia.  
_______________ 
  
 Pursuant to Article 12.1 (b) and (c) of  the WTO Agreement on Safeguards ("WTO 
Safeguards"), the Republic of Indonesia notifies on the findings and the imposition of a safeguard 
measure on imports of Stranded wire, ropes and cabl es, locked coil, flattened strands and non-rotating 
wire ropes under HS code Ex. 7312.10.10.00, for a period of three (3) years by the issuance of 
Minister of Finance's Decree number: 55/PMK.011/2011
1 dated 23 March 2011, promulgated in the 
Berita Negara of the Republic of Indonesia Number 160 on the same date.   It is requested that this notification under Article 12.1 (b) and (c) of the Agreement on 
Safeguards be brought to the notice of Members.  
A. B
ACKGROUND  
 
 On 27 January 2010, PT Wonosari Jaya as the domestic industry filed an application with 
Indonesian Safeguards Committee (Komite Pengamana n Perdagangan Indonesia/ KPPI) requesting 
for a safeguard measures against imports of Stranded wire, ropes and cables for locked coil, flattened 
strands and non-rotating wire ropes. 
 
                                                      
1 A copy of the relevant resolution (PERATURAN MENTERI KEUANGAN NOMOR 
55/PMK.011/2011 - in Indonesian only) has been submitted electronically.  To consult this document please 
contact Ms. Budd (hilary.budd@wto.org) or Ms. McGrath (judith.mcgrath@wto.org) of the Rules Division. G/SG/N/8/IDN/6 
G/SG/N/10/IDN/6 G/SG/N/11/IDN/5 
Page 2 
  
   The domestic industry claimed to be seriously injured by increased imports of Stranded wire, 
ropes and cables, locked coil, flattene d strands and non-rotating wire ropes under 
HS code Ex. 7312.10.10.00.  
 
1. Initiation of investigation 
 
 After examining a request made by the domestic  industry, the investigating authority decided 
to initiate an investigation, and individual notice sent to all known interested parties and concerned 
government agencies. The Government of Indonesi a also notified members of the WTO through the 
WTO Secretariat which issued the notificati on on the 18 February 2010 (G/SG/N/6/IDN/9).  
 
2. Subject good 
 
 As notified by the Republic of Indonesia under Article 12.1(a) of the WTO Agreement on 
Safeguards (G/SG/N/6/IDN/9),  the subject good of the investigation is Stranded wire, ropes and 
cables for locked coil, flattened strands and non-rotating wire ropes HS code 7312.10.10.00. However, based on the result of investigation the product produced by the domestic industry is only 
apart of HS code 7312.10.10.00. i.e. Steel Wire Ropes, shuttle from 6 or more stranded wire, each 
outer layer of wire on each stranded wire shaped to  interlock wire in a stranded wire (locked coil, 
flattened strands and non-rotating wire  ropes) which plated or coated. For this reason the investigating 
authority only focused the investigation on HS code  Ex. 7312.10.10.00 Steel Wire Ropes, shuttle from 
6 or more stranded wire, each outer layer of wire on each stranded wire shaped to interlock wire in a stranded wire (locked coil, flattene d strands and non-rotating wire ropes) which plated or coated.   
 
3. Period of investigation 
 
 The period of investigation covers calendar years 2006 until 2008.  
 
4. The domestic industry 
 
 PT. Wonosari Jaya represents 59 per cent of the total subject good produced in Indonesia. 
 
5. Hearing 
 
 As required under Article 3.1 WTO Agreement on Safeguards, the investigating authority has 
provided opportunities and received evidence a nd comments from importers, exporting countries 
delegation, and domestic industry i.e. PT. Wonosar i Jaya, PT. Langgeng Bajapratama, and European 
Union Delegation to Indonesia & Brunei Darussalam .  The investigating authority has responded to 
the comments from European Union Delegation To Indonesia & Brunei Darussalam in letter 
ref. number: 245/KPPI/III/ 2010 dated 3 March 2010. 
 
B. INFORMATION ON VOLUME OF IMPORTS  
 
 An analysis of the increased im ports in absolute term of the subject good has been carried out 
over the period from 2006 to 2008. Based on the an alysis of the volume of import data, the 
investigating authority found that the import of the subject good has increased by 133.6 per cent in 
2006 to 2007 and 269.6per cent in 2007 to 2008. 
  G/SG/N/8/IDN/6 
 G/SG/N/10/IDN/6 
 G/SG/N/11/IDN/5 
 Page 3 
  
  Table 1: Volume of Import (Ton) of the Subject Good
 
 
Description Unit 2006 2007 2008 
Imports Ton 883 2,063 7,624 
Source :  Statistics Indonesia  
 
C. UNFORESEEN DEVELOPMENT  
 
 The increased of national consumption of the subject good by 102 pe r cent from 2006 to 2007 
and by 244 per cent from 2007 to 2008 was unpredicte d due to the rapid domestic demand associated 
to certain development activities in Indonesia. Th is condition resulted in increased imports of the 
subject good by 133.6 per cent in  2006 to 2007 and 269.6 per cent in 2007 to 2008 but decreased in 
market share of the domestic industry from 17 per cent in 2006 to 7 per cent in 2007 and 2 per cent in 
2008.  In addition to the rapid de velopment activities, economic crisis  occurred in the second semester 
of 2008 was also unforeseen. While economic crisis  had caused a decline in demand, the major 
supplier's countries to the Indonesian market experi enced an oversupply, which resulted in a massive 
exports of the subject good to Indonesia.  
 
EVIDENCE OF SERIOUS INJURY CA USED BY INCREASED IMPORTS (EVIDENCE OF SERIOUS 
INJURY AND EFFECT OF THE INCREASED IMPORTS ) 
 As stipulated  in Article 4.2(a) of th e WTO Agreement on Safeguards the investigating 
authority made an evaluation of all relevant fact ors of economic condition of  the domestic industry, 
such as production, domestic sales, productivity, pr oduction capacity, inventory, utilization capacity, 
profit and loss, and employment. Based on information available to the investigating authority during 
the process of investigation, the following conclusions  as shown in Table 2 and 3, had been reached:    
 
(i) Over the period of 2006 to 2008, the domest ic sales also continuously decreased from 
100 indexed points in 2006 to  81 indexed point in 2007 and further decrease to 
67 indexed points in 2008.  As the result of inability of the domestic industry to stop 
the declining domestic sales from 2006 to 2008, the production also continuously decline, and the productivity as well as the capacity utilization also decreased during 
the same period.  
(ii) However, the production capacity was relatively stable during the period of 
investigation, as the result of the domestic industry's decision to maintain the number 
of machines in the factory.    
(iii) Despite the fact that the domestic industr y's production continuously decrease, the 
inventory of the domestic industry has increased from 2006 to 2008, due to the loss of market share from year to year.  
(iv) Although the national consumption continue d to increase substantially from 2006 to 
2008, the market share of the domestic industry declined continuously in the same period. On the contrary, during the period of investigation the volume and market 
share of imports have increase significantly. Th is is a strong indication that the market 
share of the domestic industry has been taken by imports of the subject good. G/SG/N/8/IDN/6 
G/SG/N/10/IDN/6 G/SG/N/11/IDN/5 
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  (v) A combination of the declined of domestic sales resulted in loss of market share, 
together with increased of inventory, had caused a heavy financial losses of the 
domestic industry during the period of inves tigation. The negative development of the 
financial condition forced the domestic industry to layoff a number of employees. 
Table 2:  Indicators of Serious Injury
 
 
YEAR NO DESCRIPTION UNIT 2006 2007 2008 
1 Production Index 100 77 65 
2 Domestic Sales Index 100 81 67 
3 Productivity Index 100 84 77 
4 Production Capacity  Index 100 100 100 
5 Inventory Index 100 103 107 
6 Utilization Capacity*  % 10 8 7 
7 Profit and Loss Index (100) (152) (1,223) 
8 Employment Index 100 92 85 
*not an indexed figure  
Table 3:  Volume Effect  
 
YEAR NO DESCRIPTION UNIT 2006 2007 2008 
1. National Consumption Index 100 202 697 
2. Volume of Import Ton 883 2,063 7,624 
3. Production Index 100 77 65 
4. Market Share of the 
Domestic Industry  Index 100 40 10 
5. Market Share of 
Imports Index 100 112 118 
 
 
D. OTHER FACTORS THAT MAY CONTRIBUTE TO INJURY  
 
 The investigating authority had also examined certain known other factors in order to find out whether the volume of imports of the subject good is the only factor that have cause serious injury to 
the domestic industry.    
1. Contraction of Demand 
 As shown in Table 3 domestic consumption has increased continuously from 2006 to 2008. 
This situation indicated that there is no contrac tion of demand that caused serious injury to the 
domestic industry.    G/SG/N/8/IDN/6 
 G/SG/N/10/IDN/6 
 G/SG/N/11/IDN/5 
 Page 5 
  
  2. Exports Performance 
 Based on examination of information collected from the domestic indust ry, the investigating 
authority found that there was no export by the domestic industry during the period of 2006 to 2008.  
  
3. Technology 
 The machinery of the domestic industry is comparable and competitiv e with those used by 
producers of imported subject good. Hence, technolog y of the machinery is not a factor causing a 
serious
 injury suffered by the domestic industry.  
 
4. Competition With Other Domestic Producers  
 There are three domestic producers of the subject good in Indonesia.  One producer is the 
supporter of the applicant domestic industry, the othe r producer's production is solely for export. It is 
clear that there is no competition with other domes tic producers that caused serious injury to the 
domestic industry.    
 
E. CONCLUSION OF THE FINDING AND CAUSAL LINK 
  Based on information as shown in Tables 2 a nd 3, the investigating authority found that: 
 
1. The domestic industry suffered from a serious injury due to the reduction of capacity 
utilization, production, domestic sales, market sh are, employment, as well as continues significant 
financial losses during the period of investigation.  
2. The serious injury experienced by the domes tic industry has caused by increased volume of 
imports of the subject good.    
F. D
ESCRIPTION OF THE SAFEGUARDS MEASURE  
 1. On the basis of the finding of the investigating authority as referred in point B, C, D, E, and F, 
the Government of Indonesia  decided to impose a safeguards measure on the importation of Steel 
Wire Ropes, shuttle from 6 or more stranded wire , each outer layer of wire on each stranded wire 
shaped to interlock wire in a stranded wire (locke d coil, flattened strands a nd non-rotating wire ropes) 
which plated or coated is included falling within tariff HS code Ex 7312.10.10.00. 
2. Reliable with Article 7.4 of the WTO Agreemen t on Safeguards, progressive liberalization of  
a safeguards measure in the form of specific duty will be imposed for 3 (three) years, as follows: 
Table 4:  Timetable of the Safeguards Measure
 
 
Period Specific Duty 
23 March 2011 – 22 March 2012 Rp. 18,620/Kg 
23 March 2012 – 22 March 2013 Rp. 17,326/Kg 
23 March 2013 – 22 March 2014 Rp. 16,858/Kg 
 
3. The safeguards measure shall not be applie d against the subject good originating from 
developing countries with a market share of less than 3per cent of total volume imports or collectively do not exceed 9 per cent of the total volume imports of Steel Wire Ropes, shuttle from 6 or more 
stranded wire, each outer layer of wire on each strande d wire shaped to interlock wire in a stranded G/SG/N/8/IDN/6 
G/SG/N/10/IDN/6 G/SG/N/11/IDN/5 
Page 6 
  
  wire (locked coil, flattened strands  and non-rotating wire ropes) which plated or coated is included 
falling within tariff HS code Ex 7312.10.10.00. 
4. The following developing countries shall be excluded from the measure as their exports are 
less than 3 per cent of total imports to Indonesia (A rticle 9.1 of the WTO Agreement on Safeguards).  
List of Developing Countries excluded from the measures
 
 
COUNTRY COUNTRY 
Albania Dominican Republic 
Angola Ecuador 
Antigua and Barbuda Egypt 
Argentina El Salvador 
Armenia Fiji 
Bahrain, Kingdom of Former Y ugoslav Republic of Macedonia (FYROM) 
Bangladesh Gabon 
Barbados Georgia 
Belize Ghana 
Benin Grenada 
Bolivarian Republic of Venezuela Guatemala 
Bolivia, Plurinational State of Guinea 
Botswana Guinea Bissau 
Brazil Guyana 
Brunei Darussalam Haiti 
Burkina Faso Honduras 
Burundi Hong Kong, China 
Cambodia India 
Cameroon Jamaica 
Cape Verde Jordan 
Central African Republic Kenya 
Chad Kingdom of Saudi Arabia 
Chile Korea, Republic of 
Colombia Kuwait 
Congo Kyrgyz Republic 
Costa Rica Lesotho 
Côte d'Ivoire Macao, China 
Croatia Madagascar 
Cuba Malawi  
Democratic Republic of the Congo Malaysia 
Djibouti Maldives 
Dominica Mali  G/SG/N/8/IDN/6 
 G/SG/N/10/IDN/6 
 G/SG/N/11/IDN/5 
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COUNTRY COUNTRY 
Mauritania Senegal 
Mauritius Sierra Leone 
Mexico Solomon Islands 
Moldova South Africa 
Mongolia Sri Lanka 
Morocco Suriname 
Mozambique Swaziland 
Myanmar Chinese Taipei 
Namibia Tanzania 
Nepal Thailand 
Nicaragua The Gambia 
Niger Togo 
Nigeria Tonga 
Oman Trinidad and Tobago 
Pakistan Tunisia 
Panama Uganda 
Papua New Guinea Ukraine 
Paraguay United Arab Emirates 
Peru Uruguay 
Philippines Viet Nam 
Qatar Zambia 
Rwanda Zimbabwe 
Saint Kitts and Nevis  
Saint Lucia  
Saint Vincent & The Grenadines  
 
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