G/SG/N/8/IDN/20/Suppl.1  
G/SG/N/10/IDN/20/Suppl.2  
16 July 2021 
(21-5666) Page: 1/5 
Committee on Safeguards   
 
  
NOTIFICATION UNDER ARTICLE  12.1(B) OF THE AGREEMENT ON  
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT  
THEREOF CAUSED BY INCREASED IMPORTS  
NOTIFICATION OF A PROPOSAL TO IMPOSE A MEASURE  
INDONESIA  
Ceramic flags and paving, hearth or wall tiles  
Supplement  
The following communication, dated 1 4 July 2021 and received on  15 July 2021 , is being circulated 
at the request of the delegation of Indonesia.  
 
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Pursuant to Article 7.2 and Article 12.1(b) of the WTO Agreement on Sa feguards, the Government 
of the Republic of Indonesia, hereinafter referred as "GOI", hereby notifies the Committee on 
Safeguards on the investigation findings concerning the extension of safeguard measure s against 
the importation of Ceramic flags and paving, hearth or wall tiles  under HS Codes 6907.21.91, 
6907.21.92, 6907.21.93, 6907.21.94, 6907.22.91, 6907.22.92, 6907.22.93, 6907.22.94, 
6907.23.91, 6907.23.92, 6907.23.93 and 6907.23.94 . 
A. GENERAL BACKGROUND  
On 9 April 2021, the KPPI hereinafter referred as the "Investigating Authority ", received an 
application from Indonesi an Ceramic Industry Association (Asosiasi Aneka Industri Keramik 
Indonesia/ASAKI) hereinafter referred as the "Applicant ", requ esting for the extension of safeguard 
measure s on the importation of the Subject Goods, which continues to be necessary to prevent  or 
remedy  serious  injury and that the domestic industry is adjusting . Other known domestic industry, 
PT. Cahayaputra Asa Keramik Tbk and PT. Satyaraya Keramindoindah , through  a letter on a date of 
4 June 2021 and 7 June 2021 stating that they are fully support the extension of safeguard 
measure s so the domestic industry not s uffered further injury . 
The Investigating Authority  initiated a safeguard investigation against importation of Subject Goods 
on 5 May 2021 (as announced in "Bisnis Indonesia " daily newspaper), and was notified to the WTO 
which had been circulated on 10 May 2021 (G/SG/N/6/IDN/28/Suppl.1 ). 
1.  Major Proportion  
The total production of the Applicant is 54 % from total domestic production, representing a major 
proportion of the total domestic production of the Subject Goods in Indonesia.  
2.  Evidence and Views by Interested Parties  
In accordance with Article 3.1 of the WTO Agreement on Safeguards, during the process of 
investigation, the Investigating Authority has provided opportunities to all interested parties, to G/SG/N/8/IDN/20/Suppl.1 • G/SG/N/10/IDN/20/Suppl.2  
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  submit their  views, evidences, comments, and responses concerning the investigation . In light of 
the aforementioned, the Investigating Authority has held a public hearing on 2 4 May 2021. 
3.  The WTO document referring to the notification of initial application of the measure  
G/SG/N/6/IDN/28/Suppl.1 , dated on 10 May 2021. 
4.  The duration of the measure from initial application till the date at which it will be 
extended  
The duration of initial  application  of the safeguard measure is three years 
(12 October  2018-11 October  2021).  
5.  Precise description  of the product involved . 
Referring to the notification made in accordance with Article 7.2 and Article 12.1(a) as circulated in 
document number  G/SG/N/6/IDN/28/Suppl.1 , and in light of the notification made in accordance 
Article 12.1(c) as circulated in document G/SG/N/10/IDN/20/S uppl.1 - G/SG/N/11/IDN/17 , the 
Subject Goods under investigation is Ceramic flags and paving, hearth or wall tiles  under HS Codes 
6907.21.91, 6907.21.92, 6907.21.93 , 6907.21.94, 6907.22.91, 6907.22.92, 6907.22.93, 
6907.22.94, 6907.23.91, 6907.23.92, 6907.2 3.93 and 6907.23.94 . 
6.  Period of Investigation  
The period of investigation  is 2016 to 2020. 
B. NOTIFICATION UNDER ARTI CLE 12.1(B) OF THE AGREEMENT ON SAFEGUARDS ON 
FINDING A SERIOUS INJURY OR THREAT THEREOF CAUSED BY INCREASED IMPORTS  
1.  Information  on absolute increase in imports  
Table 1: Volume of Imports  
Description  Year Changes  (%) Trend  
16-20 
(%) 
 2016  2017  2018  2019  2020  16-17 17-18 18-19 19-20  
Imports 
(Ton)  1,069,859  1,257,123  1,484,320  1,337,661  1,334,486  17.50  18.07  (9.88)  (0.24)  5.17 
Source : Indonesian Statistic  
As shown in Table 1 , it is verified that t he absolute trend of increasing the number of imports of the 
Subject Goods is 5.17 %. Eventhough , during the period of imposition of safeguard measures , it 
decreased by 9.88 % in 2018 to 2019 and 0.24 % in 2019 to 2020 . 
2.  Information on imports relative to the domestic production  
Table 2 : Volume of Imports and Domestic Production  
Description  Unit Year Trend  
16-20 
(%) 
  2016  2017  2018  2019  2020   
Volume of Imports  Ton 1,069,859  1,257,123  1,484,320  1,337,661  1,334,486  5.17 
Domestic Production  Index  100 98.96  99.28  111.38  95.08  0.17 
Imports Relative to 
Domestic Production  Index  100 118.74  139.75  112.25  131.19  4.99 
Source : Indonesian Statistic, Verification Result, and processed.  
As determined in Table 2, the imports relative trend of increasing to the domestic production of the 
subject goods is 4.99 %. The imports relative to the d omestic production decreased in  2018 to 2019 G/SG/N/8/IDN/20/Suppl.1 • G/SG/N/10/IDN/20/Suppl.2  
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  after the impos ition of safeguard measures by 19.68 %. However, in 2019 to 2020 , the imports 
relative to the domestic production has increased by 16.87 %. 
3.  Evidence of serious injury or threat thereof caused by increased imports  
The Investigating Authority examined all data and information available base d on the actual 
condition of the domestic  industry . In addition, the Investigating Authority also conducted on -site 
verifications to the domestic industry . The following table 3 and table 4, contained data and 
information of the situation of the domestic industry, which is provided in indices.  
Table 3: Market Share of the Imports, Market Share of The Applicant s and the non-Applicants  
No. Description  Unit Year Trend  
16-20 
(% 
2016  2017  2018  2019  2020   
1. National 
Consumption  Index  100 111.88  112.08  120.86  101.64  1.10 
2. Market Share of 
Imports  Index  100 105.03  123.79  103.45  122.73  4.02 
3. Market Share of the 
Applicants  Index  100 92.81  100.33  88.06  95.95  (1.34)  
4. Market Share of the 
Non-Applicants  Index  100 106.32  85.26  113.44  91.60  (1.10)  
Source : As verified by the Investigating Authority  
Based on table 3  above, t he market share of the Applicant  in 2017  decreased to 92.81 index points  
compared to the previous year, t hen after the imposition of the safeguard measures, in 2018 it 
increased to 100.33 index points, but in 2019 it decreased by 88.06 index points due to the flood of 
imported goods, so that in 2020 the applicant's market share which increased to 95.95 index points . 
Looking at the 2016 -2020 trends , the market share of Applicants experienced a declining trend of 
1.34%, as well as the market share of the non-Applicants which experienced a declining trend of 
1.10%, inversely proportional to the import market shar e which experienc ed an increasing trend of 
4.02% in line with the increase of national consumption with a trend of 1.10 %. 
Table 4: The Applicant s Indicators of Injury  
No. Description  Unit Year Trend  
16-20 
(%) 2016 2017 2018 2019 2020 
1. Production  Index  100 98.15  108.49  108.62  98.27  0.67 
2. Domestic Sales  Index  100 103.83  112.45  106.43  97.52  (0.26)  
3. Capacity Utilization  Index  100 98.15  108.20  99.71  90.21  (1.89) 
4. Profit and Losses  Index  100 42.18  (726.10 ) 225.60 12.91  (0.09) 
5. Productivity  Index  100 98.68  101.96  104.95  100.79  0.78 
6. Employment  Index  100 99.46  106.40  103.50  97.50  (0.11)  
7. Inventory  Index  100 95.54 97.23  141.82  172.03  15.95  
Source : As verified by the Investigating Authority  
a) During the investigation period, the Applicant's domestic sales decrease with a trend of 0.26% 
due to a surge imports of the subject good , the decrease of domestic sales resulting an increased  
of inventories with a trend of 15.95 %. 
b) The production experienced  a slight increase with a trend of 0.67 % during the investigation 
period . This condition causes the capacity utilization decrease with a trend of 1.89%. 
c) The number of Employment decreased wi th a trend of 0.11%, the downward trend occured  due 
to some of production lines forced to stopped  caused by the increase of inventory  resulting t he 
productivity of the Applicants  could not be fully optimized  with a  trend  of 0.78 %. 
d) The decline in domestic sales as a result of the increase of imported goods, directly impacted 
the decline in profits during the investiga tion period with a trend of 0.09 %. G/SG/N/8/IDN/20/Suppl.1 • G/SG/N/10/IDN/20/Suppl.2  
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  4.  Evidence  that the Applicant is adjusting  
During the imposition of the initial period of safeguard  measure s the Applicant has undertaken the 
following adjustment program:  
a) Machinery  improvement  capacity  
b) Addition of Marketing  Area 
c) Sending the Research  team and development to international exhibitions of Subject Goods . 
d) Developing technology  by searching for formulas and more stable sources of raw materials.  
It can conclude that the Applicant is still adjusting to improve their production capacity  on the  
machinery, the addition of marketing area, Sending the research team and development to 
international exhibitions of Subject Goods  and the developed technology by searching for formulas 
and more stable sources of raw materials in order to compete with imp orted products . 
5.  Causal link  
a) There was an increase in imports of the Subject  Goods in absolute terms in 201 6-2020 with the 
largest import origin country of the People's Republic of China with a share of 67%, India with 
a share of 27 % and Vietnam with a share of 5 % in 2020 . 
b) National  consumption has increased, especially in 2016 -2017, which is 11.88 %. The trend of 
increasing national consumption in 2016 -2020 was 1.10%. 
c) The market share of the Applicant s and non -applicants decreased with a trend of 1.34 % and 
1.10%. At the same time, the import market share continued to increase with a trend of 4.02 %; 
d) There  is a downward trend in domestic sales volume, used capacity, profits, employment and 
an increasing trend in inventories.  
6.  Evidence that the safeguard measure  continues to be necessary to prevent or remedy 
serious injury.  
a) Even though the safeguard measure  has been imposed on the Subject  Goods, in fact the number 
of imports is still experiencing an increasing trend during t he investigation period both in 
absolute and relative terms and it is increased  imports will increase significantly if the safegu ard 
measure s is not extended.  
b) The applicant's performance data indicates a threat of serious injury  as evidenced by a downward 
trend in several applicant performance indicators, including domestic sales, used capacity, 
profits, labor, and an increase in en ding inventory . If the safeguard measure  is not extended, 
the applicant's performance will suffer serious injury . 
c) The applicant has carried out several structural adjustment programs as stated in the initial 
investigation (original case) . However, the appl icant still needs additional time to be able to 
complete the structural adjustment optimally . In addition, the applicant is also committed to 
making additional structural adjustments if the safeguard measure  is extended . 
C. NOTIFICATION OF A PROPOSAL TO EXTEN D A MEASURE  
Proposed date of introduction of the measure  
In view of the section B above, and taking into account the initial measure as previously imposed, 
the Investigating Authority has proposed to extend the imposition of the safeguard measure s on the 
importation of the Subject Goods.  
The proposed  safeguard measure s to be imposed is now being circulated for inputs from relevant 
government agencies, and will be elaborated in the notification under the Article 12.1(c) of the 
WTO Agreement on Safeg uards.  
The imposition of the safeguard measure s will be carried out  in accordance with the Article  2.2 and 
Article 9 of the WTO Agreement on Safeguards.  
The non -confidential version of the Final Report of this investigation, can be found in the website of 
the Indonesian Safeguard Committee: http://kppi.kemendag.go.id . G/SG/N/8/IDN/20/Suppl.1 • G/SG/N/10/IDN/20/Suppl.2  
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  In a view of the aforementioned findings, a safeguard measure has been proposed in form of ad 
valorem  duty with HS code, proposed date of introducti on, and expected duration of the measure 
as follow:  
Table 5 : Safeguard Measures  
Period  Safeguard Measures  
Year 1  17% 
Year 2  15% 
Year 3  13% 
D. CONSULTATIONS  
Members having a substantial interest as exporters of the Subject Goods should submit written 
request within a period of 7 days from the date of ci rculation of this notification . All written request 
must be sent both in written letter and in electronic format, and must indicate the name, address, 
email  address, phone s 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 . The consultation is scheduled to be held  no later 
than 13 August  2021. The contact information for correspondence is:  
 
 
DIRECTORATE OF MULTILATERAL NEGOTIATION , MINISTRY OF TRADE  
M.I. Ridwan Rais Street No.5, Building 2, 9th floor, Jakarta 10110  
Telephone / Facsimile : (62-21) 3840139  
Email : dit.multilateral.ppi@kemendag.go.id  
 
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