WORLD TRADE  
ORGANIZATION  G/SG/N/8/IDN/5 
G/SG/N/10/IDN/5 G/SG/N/11/IDN/4 
11 April 2011 
 
(11-1804) 
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 
 
(Stranded wire, ropes and cables, excluding locked coil ,  
flattened strands and n on-rotating wire ropes ) 
 
 
 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 cables under HS code: 7312.10.90.00 for a period of 
three (3) years by the issuance of Minister of Finance's Decree number:  54/PMK.011/2011
1 
dated 23 March 2011, promulgated in the Berita Ne gara of the Republic of Indonesia Number 159 on 
23 March 2011.  
 
 It is requested that this notification under Article 12.1 (b) and (c) of the WTO Agreement on 
Safeguards be brought to the notice of Members.    
A. B
ACKGROUND  
 On 16 April 2010, PT Wonosari Jaya filed an  application with Indonesian Safeguards 
Committee (Komite Pengamanan Perdagangan Indonesi a/ KPPI) requested for a safeguards measure 
against imports of Stranded wire, ropes and cables, excluding locked coil, flattened strands and non-
rotating wire ropes; platted or coated with brass, and of a nominal diameter not exceeding 3 mm; and 
stranded wire of diameter of less than 3 mm falling within tariff HS code: 7312.10.90.00.  The request 
                                                      
1 A copy of the relevant resolution (PERATURAN MENTERI KEUANGAN NOMOR 
54/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/5 
G/SG/N/10/IDN/5 
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Page 2  
 
  was based on the claim that there was signifi cant volume increased of imports of the product 
concerned during the period of 2006 to 2009, whic h caused a serious injury to the applicant.  
 
 The applicant hereby referred as "the domestic  industry" represents 68 per cent of the total 
production of the product concerned in Indonesia. 
 
1. Initiation of investigation 
 
 After examining the request and concluding that there were preliminary evidence of increased 
volume of imports and injury, the investigating au thority decided to initiate an investigation and 
individual notice sent to all known interested pa rties and concerned government agencies.  The 
Government of Indonesia notified members of the WTO through the WTO Secretariat, which issued 
the notification on the 21 May 2010 (G/SG/N/6/IDN/10).  
 
2. Subject good 
  The product under investigation, which hereby  referred as "the subject good", is Stranded 
wire, ropes and cables, excluding locked coil, flattene d strands and non-rotating wire ropes; platted or 
coated with brass, and of a nominal diameter not exceeding 3 mm; and stranded wire of diameter of 
less than 3 mm falling within tariff HS code 7312.10.90.00. 
 
3. Period of investigation 
 
 The investigating authority decided to set the period of investigation, which covered the year of 
2006 until 2009.  
 
4. Hearing 
 
 In order to provide opportunities to importe rs, exporting country's government representative 
and the domestic industry to submit evidence and co mments, the investigating authority organized a 
hearing on 17 June 2010.  The comments and arguments received by the investigating authority are 
from PT. Wonosari Jaya, PT. Langgeng Bajapratama, and the Emb assy of Malaysia.  Responding to 
the comments and arguments presented by the Embassy of Malaysia in Jakarta, the investigating 
authority sent a letter ref. number: 407/KPPI/VII/2010 on 9 July 2010. 
 B. I
NFORMATION ON INCREASED IN IMPORTS  
 The investigating authority has conducted an ev aluation of the trends of volume of imports 
over the period of investigation.  As the result of the evaluation, the investigating authority found that 
in absolute term the imports of the subject good h as increased significantly by 299 per cent during the 
period of investigation.  
  G/SG/N/8/IDN/5 
 G/SG/N/10/IDN/5 
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  Table 1: Volume of Import (Kg) of the Subject Good  
 
Description Unit 2006 2007 2008 2009 
Imports Kg 6,219,219 13,327,197 22,498,413 24,826,549 
Source :  Statistics Indonesia 
 
C. UNFORESEEN DEVELOPMENT  
 
 Between the years of 2006 and the second ha lf of 2008, according to the World Steel 
Association, the world production of steel including  the subject good, had increased in particular 
certain major suppliers.  While in the second half  of 2008 the global demand of the subject good start 
to decline.  This condition led to an oversupply of  the subject goods in certain major suppliers of 
Indonesian imports, resulted in increased of their expo rts to Indonesia, which was not anticipated.  In 
addition to un-anticipated increased of volume of  imports, the lower price of imported subject good 
also unforeseen.  
 As the result of the commitments made by the Government of Indonesia under various Free 
Trade Agreements, the import tariff of the subject good has been significantly reduced.  The influx of 
imports of the subject good due to furt her market opening was not predicted. 
 D. E
VIDENCE OF SERIOUS INJURY AND EFFECT OF INCREASED IMPORTS  
 
 The following Tables 2 and 3 contain evidence collected by the investigating authority from 
the response of the domestic industry to the questi onnaire and the verification made on-site.  On the 
basis of the evidence the investig ating authority found that:    
  
(i) As indicated in Tables 2 and 3, during the period of investigation there was sustain 
increased of imports of the subject good.  In parallel the national consumption had 
also increased, while the domestic sales of the domestic industry continuously declined.  This development has negative impact to the market share of the domestic 
industry.  At the same time the market sh are of imports had increased equal to the 
decreased of domestic industry's market share.  
(ii) The loss of market share and the decline in  domestic sales made it impossible for the 
domestic industry to maintain the production.   On the contrary, the production of the 
domestic industry during the period of inv estigation had decreased consistently. 
(iii) Due to the decline in production and dom estic sales, the productivity of the domestic 
industry had decreased from 2006 to 2009. 
(iv) As verified by the investigating authority the inventory of the domestic industry has 
increased from year to year, with a significant number of 134 indexed points in 2009 
compare with the previous years, due to inability of the domestic industry to sell the 
subject good in domestic market despite the efforts to reduce the production. 
(v) Even though production capacity was relatively stable from 2006 to 2009, but the 
capacity utilization continued to decrease during the same period as the domestic 
production also declined steadily. G/SG/N/8/IDN/5 
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  (vi) As a result of declining in domestic sales and market share as well as increasing 
inventory, the domestic industry suffered from huge financial losses during the period 
of investigation, with the biggest losses in 2009.  
(vii) The domestic industry inevitably had to layoff a number of employees due to the 
continued heavy financial losses as described in the previous points.  
Table 2:  Indicators of Serious Injury
 
 
YEAR NO DESCRIPTION UNIT 2006 2007 2008 2009 
1 Production Index 100  81  68  65  
2 Domestic Sales Index 100 85 70  52  
3 Productivity Index 100  81  70  72  
4 Production Capacity  Index 100  100  100  100  
5 Inventory Index 100  103  108  134  
6 Utilization Capacity  % 13 10  9  8  
7 Profit and Loss Index  (100)  (159)  (1.281) (1.891) 
8 Employment Index 100 99  97 90  
 
Table 3:  Volume Effect  
 
YEAR NO DESCRIPTION UNIT 2006 2007 2008 2009 
1. National Consumption Index 100 194 316 344 
2. Volume of Import Kg 6,219,219 13,327,197 22,498,413 24,826,549 
3. Production Index 100 81 68 65 
4. Market Share of the 
Domestic Industry Index 100 44 22 15 
5. Market Share of 
Imports Index 100 111 115 116 
 
 
E. OTHER FACTORS THAT MAY CONTRIBUTE TO INJURY  
 In order to find evidence that injury of the domestic industry only caused by the increased 
volume of imports, the investigating authority al so examined the following other known factors: 
 
1. During the period of investigation, it was also analyzed whether exports of the domestic 
industry of the subject good contributed to the serious injury.  However, it is found that there was no 
export by the domestic industry during the period.   Consequently the investigating authority 
concluded that export is not a contributing factor  to the serious injury suffered by the domestic 
industry.  G/SG/N/8/IDN/5 
 G/SG/N/10/IDN/5 
 G/SG/N/11/IDN/4 
 Page 5 
 
 
  2. It is found that production capacity of the domestic industry was large enough to fulfil the 
national consumption.  Thus, it is clear that producti on capacity is not a factor to the serious injury 
suffered by the domestic industry.  
F. CONCLUSION OF THE FINDING AND CAUSAL LINK 
 
 As already pointed out in point D, the domestic  industry was unable to maintain the market 
share, the domestic sales, and production during the peri od of investigation, while at the same time the 
volume of imports and the market share of imports  has increased continuously.  These developments 
result in negative developments of certain relevant  factors of the condition of the domestic industry 
including significant financial losses.  The findings illustrated in point E confirmed that there was no 
other factor contributed to the domestic industry's seri ous injury.  It is clear evidence that there is a 
causal link between injuries suffered by the domestic industry with the increased volume of imports of the subject good. 
 
G. D
ESCRIPTION OF THE SAFEGUARDS MEASURE  
 
1. As referred to in the above-mentioned findings , the Government of Indonesia decided that 
safeguards measure to be imposed on imports of Stranded wire, ropes and cables, excluding locked 
coil, flattened strands and non-rotating wire ropes;  platted or coated with brass, and of a nominal 
diameter not exceeding 3 mm; and stranded wire of diameter of less than 3 mm falling within tariff 
HS code 7312.10.90.00. 
2. In order to provide time for the domestic industr y to recover from the serious injury and to  
make adjustments, the safeguards measure in the fo rm of specific duty as indicated in Table 4 will be 
liberalize progressively.  The measure will be imposed for 3 (three) years. 
Table 4:  Timetable of the Safeguards Measure  
 
Period Specific Duty 
23 March 2011 – 22 March 2012 Rp. 24,080/Kg 
23 March 2012 – 22 March 2013 Rp. 21,464/Kg 
23 March 2013 – 22 March 2014 Rp. 18,849/Kg 
 
3. In accordance with Article 9.1 Agreement on Sa feguards, the Safeguard Measure shall not be 
applied against the subject good originating from developing countries with a market share of less 
than 3 per cent of total volume imports or collectively do not exceed 9 per cent of the total volume imports of Stranded wire, ropes and cables, excludi ng locked coil, flattened strands and non-rotating 
wire ropes; platted or coated with brass, and of a nominal diameter not exceeding 3 mm; and stranded 
wire of diameter of less than 3 mm fa lling within tariff HS  code 7312.10.90.00. 
4. The developing countries to be excluded from the me asure are as shown in the following list.  G/SG/N/8/IDN/5 
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  List of Developing Countries excluded from the measures
 
 
COUNTRY COUNTRY 
Albania El Salvador 
Angola Fiji 
Antigua and Barbuda Former Yugos lav Republic of Macedonia (FYROM) 
Argentina Gabon 
Armenia Georgia 
Bahrain, Kingdom of Ghana 
Bangladesh Grenada 
Barbados Guatemala 
Belize Guinea 
Benin Guinea Bissau 
Bolivarian Republic of Venezuela Guyana 
Bolivia, Plurinational State of  Haiti 
Botswana Honduras 
Brazil Hong Kong, China 
Brunei Darussalam India 
Burkina Faso Jamaica 
Burundi Jordan 
Cambodia Kenya 
Cameroon Kingdom of Saudi Arabia 
Cape Verde Kuwait 
Central African Republic Kyrgyz Republic 
Chad Lesotho 
Chile Macao, China 
Colombia Madagascar 
Congo Malawi  
Costa Rica Maldives 
Côte d'Ivoire Mali 
Croatia Mauritania 
Cuba Mauritius 
Democratic Republic of the Congo Mexico 
Djibouti Moldova 
Dominica Mongolia 
Dominican Republic Morocco 
Ecuador Mozambique 
Egypt Myanmar 
   G/SG/N/8/IDN/5 
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COUNTRY COUNTRY 
Namibia Solomon Islands 
Nepal South Africa 
Nicaragua Sri Lanka 
Niger Suriname 
Nigeria Swaziland 
Oman Chinese Taipei 
Pakistan Tanzania 
Panama The Gambia 
Papua New Guinea Togo 
Paraguay Tonga 
Peru Trinidad and Tobago 
Philippines Tunisia 
Qatar Uganda 
Rwanda Ukraine 
Saint Kitts and Nevis United Arab Emirates 
Saint Lucia Uruguay 
Saint Vincent & The Grenadines Viet Nam 
Senegal Zambia 
Sierra Leone Zimbabwe 
 
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