WORLD TRADE  
ORGANIZATION   
G/SG/Q1/IDN/10 
11 May 2012 
 (12-2545) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION OF LAWS AND REGULATIONS UNDER 
ARTICLE 12.6 OF THE AGREEMENT 
 
Replies to Questions posed by the UNITED STATES
1 
Regarding the Notification of INDONESIA2 
   The following communication, dated 2 May 2012, is being circulated at the request of the 
Delegation of Indonesia.    
_______________ 
 
 
Question 1 
  With regard to Article 72 (1) of Government Regulation 34, could Indonesia please 
clarify what is meant by "other domestic parties?"  
Reply 
  With regard to Article 72 (1), "other domestic  parties" means government institutions and/or 
regional governments, or representatives of dom estic industry such as chambers of commerce, 
cooperatives which are associated with the Products Under Investigation, the Like Products or the 
Directly Competitive Products.  
Question 2 
 
 Several articles of Government Regulation 34 refer to the sequence of events following 
the end of an investigation.  With that und erstanding, we pose the following questions:   
 
a. Article 74 (3) of Government Regulation 34 states "An investigation ends on the 
date of the final report on the result of investigation." Could Indonesia please 
clarify at what stage safeguard (SG) duties are imposed?  Is it when the final 
report is published via "public notice" or on the date that the Minister issues his/her final decision?  
 
Reply 
  Article 74 (3) refers to the end of the inves tigation process whereas the decision to impose or 
terminate measures is taken after the result of th e investigation are commu nicated to the decison 
making body.  
                                                      
1 G/SG/Q1/IDN/7.   
2 G/SG/N/1/IDN/3.   G/SG/Q1/IDN/10 
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  b. Articles 81, 84 and 87 of Government Re gulation 34 discuss the process by which 
a recommendation following an investi gation (or review) is made from the 
Indonesian Safeguard Committee ( hereinafter  KPPI) to the Minister in charge of 
trade affairs and further to the "ministers and/or heads of non-ministerial governmental institutions that are relevant to the Products Under 
Investigation."  However, it is not clea r whether the "ministers and/or heads of 
non-ministerial governmental institutions that are relevant to the Products Under Investigation" may offer binding op inions as to increasing or decreasing 
the amount of the proposed duty or whether these ministers or heads of non-ministerial government  institutions may veto the imposition of safeguard 
measures.  Can Indonesia please clarify what specific role these ministers or 
heads of non-ministerial government institutions play when they "provide its considerations" under Articles 81 (2) and 81 (3) of Government Regulation 34? 
 
Reply 
  The Minister of Trade shoud take account of  the recommendations of the KPPI and comments 
received by other Ministers and/or heads of non ministerial government institutions acting in an advisory capacity, but these recommendations and opinions are non binding as the Minister of Trade ultimately decides, within the fourteen day peri od, whether measures be imposed, the actual nature 
and rate of the measures, or that the proceeding be  terminated.  At the end of the time period, the 
Minister may also recommend further investigation of the KPPI on issues raised and considered of 
material relevance.  
c. Under Article 82 (4) of Government Regu lation 34, does the Minister in charge 
of trade affairs have the ability to veto or override those considerations  provided 
by other ministers and/or heads of non-ministerial government institutions?  
 
Reply 
  Please refer to b above.   
 Question 3   Article 75 of Government Regulation 34 refers to "all relevant factors of an objective and quantifiable nature" which shall be ex amined during the course of a safeguard 
investigation.  Can Indonesia please confirm that  sufficiently detailed non-confidential versions 
of this information shall be part of the public record of the investigation?  
Reply 
  The GOI hereby confirms that sufficiently de tailed non confidential summaries shall be part 
of the public record of the investigation.   
 
Question 4 
  Article 76 (3) of Government Regulation 34 indicates that notice will be made to 
domestic parties that a safeguard investigation has been terminated, while Article 82 (1) of 
Government Regulation 34 indicates that the Indonesia Safeguard Committee will notify the 
imposition of provisional measures to petitioners or the domestic industry and the associations 
of importers.  Article 84 (8) of the Government Regulation notes that KPPI will inform the final 
imposition of a safeguard measure to petitioners or the domestic industry and the association of 
importers.  Please explain any other steps that Indonesia will take to ensure that as many  G/SG/Q1/IDN/10 
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  interested parties as possible, including affected exporters, will be made aware of termination of 
safeguard investigations, imposition of provision al and final measures as well as given adequate 
notice of all deadlines throughout the course of a safeguard investigation. 
 
Reply 
 
In addition to the undertakings as stipulat ed in Article 76 (3) and Article 82 (1) of 
Government Regulation 34/2011, thera are other u ndertakings to be conducted as to ensure that 
interested parties will be aware of termination and imposition of provisional and final measures, as 
follows: 
 
1. Through notification with the WTO Committe on Safeguard, which will be circulated to 
all member countries;  and 
2. Through announcement in the form of offici al press release or publication in national 
newspapers;  and/or 
3. Through the issuance of the minister in ch arge of fiinance's decree, which will be 
promulgated in the State Gazette. 
4. Informing the Foreign Embassies in which expor ters from their countries are affected in 
Jakarta. 
 
Indonesia believes that the above steps are more th an adequate to make all interested parties, 
including affected exporters, aware about term ination and imposition of provisional and final 
measures.  
Question 5 
 
 Article 85 of Government Regulation 34 states "In circumstances where there is a 
difference between the applicable rate of provisi onal Safeguard Duty as mentioned in Article 81 
paragraph (7) and the rate of Safeguard Duty as mentioned in article 84 paragraph (6), the 
following prevails:  a.  the excess in the payment of such provisional Safeguard Duty is not subject to any request for refund;  or..."  How do es Indonesia justify retaining duties in excess 
of the final determination in light of Article 5.1 of the WTO Agreement on Safeguards which 
states "A Member shall apply safeguard measures only to the extent n ecessary to prevent or 
remedy serious injury and to facilitate adjustment"? 
 
Reply 
 
 Article 85 refers to the circumstances that  may arise from the imposition of provisional 
safeguard measures and an affirmative determination that may result in duties that are higher or lower 
than the provisonal safeguard measures applied.  Th e intention is to provide certainty of trade by 
stating that duties above are not collected and below are not reimbursed.  
Question 6  
 
 Article 92 of Government Regulation 34 says:  
 
"(1) The Minister shall notify the Committee on Safeguards of the World Trade Organization concerning:  a. the initiation of an investigation to impose 
Safeguard Measure;  b. the imposition of  provisional Safeguard Measure;  and c. 
the imposition of Safeguard Measure. 
(2) The notification concerning the impo sition of Provisional Safeguard Measure 
shall be done before the determination of the Provisional Safeguard Duty." G/SG/Q1/IDN/10 
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   According to this Article (particularly part 2), it is our understanding that the Minister 
can notify the imposition of provisional measures prior to a determination of provisional duties.  
Is this a correct understanding of this Article?  Al ternatively, should this Article read that such 
notification will be done prior to the determination of the "Final" Safeguard Duty? 
 Reply 
 
 Article 92 (2) of Government Regulation 34/ 2011 is formulated in accordance with 
Article 12.4 of the WTO Agreement on Safeguards, which states that " A Member shall make a 
notification to the Committee on Safeguards before ta king a provisional safeguard measure referred 
to in Article 6 … ".  It should also be noted that this notifi cation will contain the ra te of the provisional 
safeguard duty.   In addition, Article 92 (2) of Govern ment Regulation 34/2011 only regulates 
notifications of provisional safeguard measures,  and does not include "Final" Safeguard Duty. 
  Article 92 (2) of Government Regulation 34/ 2011 is formulated in accordance with 
Article 12.4 of the WTO Agreement on Safeguards, which states that " A Member shall make a 
notification to the Committee on Safeguards before ta king a provisional safeguard measure referred 
to in Article 6 ". 
 
Question 7 
 
 Article 99 (2) of Government Regulation 34 states "Any objection regarding the 
execution of Antidumping Duty, Countervailing Duty and Safeguard Duty as imposed during 
the importation shall be addressed in accordance to the prevailing regulations."  Can Indonesia 
please clarify under what regulations objections regarding safeguard duties may be raised?  What is the administrative and judicial  appeals process for objections raised? 
 
Reply 
  The purpose of Government Regulation 34 /2011 is to elaborate provisions on the 
implementation of the anti-dumping, countervailing and safeguard measures, it is intended to create 
greater transperancey for interested parties and not to  limit the rights of interested parties to challenge 
such determinations through the prevailing legal system. 
   
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