WORLD TRADE  
ORGANIZATION  G/SG/N/8/IDN/1 
G/SG/N/10/IDN/1 
G/SG/N/11/IDN/1 12 May 2005 
 
(05-1933) 
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 
 
(Porcelain and non-porcelain ceramic tableware
) 
  The following communication, dated 10 May 2005, is being circulated at the request of the Delegation of Indonesia. 
 
______________  
 
  With reference to our notification as contained in document G/SG/N/6/IDN/1, 
dated 21 October 2004, I have the pleasure to submit  herewith a notification under Article 12.1(b) of 
the Agreement on Safeguards on finding serious inju ry or threat thereof caused by increased imports 
regarding the recommend of the application of a definitive safeguard measure on porcelain and  
non-porcelain ceramic, classified under the tariff heading 6911.00.00.00 and 6912.00.00.00 except toilet articles.   
 
 I would therefore kindly request you to convey this notification to all members of the Committee on Safeguards, WTO and Members having a substantial interest as exporters of the 
product under investigation could inform its willingness to hold the consultations in accordance with 
Article 12.3 of the Agreement on Safeguards.  
 G/SG/N/8/IDN/1 
G/SG/N/10/IDN/1 G/SG/N/11/IDN/1 
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1. INTRODUCTION 
On 19 October 2004, the Republic of Indonesia initiated an investigation relating to serious 
injury to domestic producers of products like or di rectly competing with imported porcelain and non-
porcelain ceramic tableware, classified under tariff heading HS 6911.00.00.00 and 6912.00.00.00 
except toilet articles.  The initiation of the inv estigation has been notified to the Committee on 
Safeguards in document G/SG /N/6/IDN/1 on 19 October 2004. 
 
2. EVIDENCE OF SERIOUS INJURY OR THREAT THEREOF CAUSED BY 
INCREASED IMPORTS 
In accordance with the domestic legislation,  the Committee on Trade Defense of Indonesia, 
responsible body for conducting respective inv estigation based on petition filed by domestic 
producers, concluded that domestic  ceramic tableware industry has suffered a serious injury and 
which is attributable to a significant increase in imports and that a definitive safeguard measure is 
necessary to prevent and remedy ser ious injury.  The investigation has taken into account data based 
on the period from 1999 to January – June 2004, whic h should further read as "investigation period".  
The investigating authority examined all releva nt factors related to the investigation.   
 a. Increase Import 
 
The investigation reveals that the import quantities of the product concerned increased 
sharply and very significantly during the last five years either in absolute or in relative terms.  
In absolute terms, the import quantity of the product concerned in 1999 was only 11,603 tons.  However, the import of product concerned in 2000 greatly increased to 21,470 tons, 
representing 85 per cent increase over the import quantity of previous year.  In 2002, the 
volume of import continuously increased significantly to 35,131 tons or corresponding to 
90 per cent compared to the import quantity in 2001.  In 2003 and 2004, the volume of import continuously rose by 14 per cent and 25 per cent respectively. 
 
The share of imported ceramic tableware in 199 9 accounted for only 32 per cent of apparent 
Indonesian market.  It increased to 42.7 per cent in 2000;  however, it slightly declined to 
38.3 per cent in 2001.  Share of import to Indonesian market continuously increased to 
55.9 per cent and significantly to 61 per cent in 2003. 
 b. Serious Injury 
 
Based on analysis of factors concerning the situation of domestic producers of the like or 
directly competitive product as indicated in Article 12(1) of the Presidential Decree No. 84/2002 and Article 4. 2(a) of the Agreement on Safeguards, the 
investigating authority has analysed indicator s for determining the injury to the domestic 
injury includes sales, profits, market share, production, capacity utilisation, inventory, 
employment, wages, and productivity.  The fi ndings of the investigation showed that 
domestic producers have suffered serious injury. 
  G/SG/N/8/IDN/1 
 G/SG/N/10/IDN/1 
 G/SG/N/11/IDN/1 
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Injury 
indicators Unit 1999 2000 2001 2002 2003 2004 
Jan-June 
Total import Tonnes 11.603 21.470 18.534 35.131 40.018 25.081 
Rate of increase %  85 (14) 90 14 25 
 
Domestic sales  
PT Lucky Tonnes  100 126 133 123 118 74 
PT Queen Tonnes  100 87 83 79 60 0 
Total domestic 
sales Tonnes  100 117 121 112 104 56 
Share to Indonesian market 
Total share of 
import % 32.0 42.7 38.3 55.9 61.0 64.5 
PT Lucky %  100 91 100 71 66 61 
PT Queen %  100 65 65 47 35 24 
Total share 
petitioners % 100 89 98 70 64 58 
Others %  100 81 87 62 54 49 
Total share of 
domestic industry % 68.0 57.3 61.7 44.1 39.0 35.5 
Total sales Tonnes 100 116 121 112 104 112 
Total sales 
revenue Rp. 100 153 189 175 156 129 
Profitability Rp. 100 55 19 (252) ( 264) (199) 
Employment  100 134 116 112 106 57 
Wages Rp. 100 112 165 222 230 12 
Utilisation rate of 
capacity % 67.6 85.5 75.2 96.7 88 69.6 
Production Tonnes 100 127 111 143 130 115 
Productivity Kg/empl 100 94 96 127 122 100 
Price comparison  
Price 
undercutting % 1.28 33 45 5.11 22.11 32.48 
Price depression %  (1.40) 40.65 15.58 18.50 21.80 20.62 
Price suppression %  (10.31) 27.89 5.08 7.74 10.74 9.67 
 
Total sales declined since 2002 onward but profitability dropped since the beginning of investigation period, while employment show ed sloped starting from year 2001 until the end 
of the investigation period.  Wages demonstrat es an increase primarily due to the amendment 
of government regulation on regional minimu m wages and "golden shake hand" or lay off 
compensation that had to be paid by domestic  industry.  Capacity utilisation rate and 
production decreased from 2002 to 2003 and has been  predicted to be continuing in the 
following years. 
 
Import price had undercut before  and during the investigation period.  The highest price 
undercutting occurred in 2001 followed by year 2000 and 2003.  Price depression and suppression occurred since year 2000 till the end of investigation period. 
 
c. Causation 
 
On the basis of available information the inv estigating authority has made a determination 
that there is clear evidence of  causal link between the recent  growth of imports of product 
under investigation and the injury caused to domestic industry that produces the like or 
directly competitive products. 
 G/SG/N/8/IDN/1 
G/SG/N/10/IDN/1 G/SG/N/11/IDN/1 
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  d. Proposed Measures 
 
It is proposed that definitive safeguard measur es be taken to prevent or remedy the serious 
injury to the domestic industry caused by the surge of imports.  The definitive safeguard 
measures  are proposed to take the form of specific tariff as an additional duty requires to be 
paid.  The measures will be applied for the import of ceramic tableware under the tariff 
heading 6911.00.00.00 and 6912.00.00.00 except toilet articles.  The proposed measure is RP. 1.600,- per kg and will be liberalised for three years as follows: 
 
Year Year 1 Year 2 Year 3 
Measures (per kg) Rp. 1.600,- Rp. 1.400,- Rp. 1.200,- 
 e. Developing countries to which the measure is not  applied under Article 9.1 of the Agreement 
on Safeguards. 
 
The list of developing countries to which the measure does not apply is attached to this notification.  G/SG/N/8/IDN/1 
 G/SG/N/10/IDN/1 
 G/SG/N/11/IDN/1 
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ANNEX 
List of developing countries exempted fr om the application of this measure: 
Albania 
Angola 
Antigua and Barbuda Argentina Bahrain Bangladesh 
Barbados 
Belize Benin Bolivia Botswana 
Brunei Darussalam 
Burkina Faso Burundi Cameroon Central African Republic Colombia 
Congo 
Costa Rica Cote d'Ivoire Croatia Cyprus 
Democratic Republic of Congo 
Djibouti Dominica Dominican Republic Ecuador Egypt 
El Salvador 
Fiji Gabon Ghana Grenada 
Guatemala 
Guyana Guinea Guinea-Bissau Haiti Honduras 
Chile 
India Jamaica Jordan Kenya 
Kuwait 
Kyrgyz Republic Lesotho Madagascar 
Malawi 
Malaysia Maldives Mali Malta 
Mauritius 
Mexico Mongolia Morocco Mozambique 
Myanmar 
Namibia Niger Nigeria Nicaragua Oman 
Pakistan 
Panama Papua New Guinea Paraguay Peru 
Philippines 
Qatar Rwanda Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines 
Senegal 
Sierra Leone Solomon Islands South Africa Sri Lanka 
Suriname 
Swaziland Tanzania Thailand The Gambia Togo 
Trinidad and Tobago 
Tunisia United Arab Emirates Uganda Uruguay 
Venezuela 
Zambia Zimbabwe 
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