WORLD TRADE  
ORGANIZATION  G/SG/N/8/IDN/7 
G/SG/N/10/IDN/7 
G/SG/N/11/IDN/6 
12 April 2011 
 (11-1806) 
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 Wire of Iron/Non-Alloy Steel, Plated with Zinc
) 
  
 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 Wire of iron/non-a lloy steel, plated with zinc, containing carbon less 
than 25 per cent by weight under HS code Ex. 7217.20.10.00, for a period of three (3) years by the 
issuance of Minister of Finance's Decree number:  56/PMK.011/2011
1 dated 23 March 2011, 
promulgated in the Berita Nega ra of the Republic of Indonesia Number 161 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 18 November 2009, Indonesian Iron And St eel Industry Association (IISIA) Compartment 
Long Product, Cluster Kawat Paku, Paku, Mur & Baut , Wire Mesh, on behalf of its members filed an 
application with Indonesian Safeguards  Committee (Komite Pengamanan Perdagangan 
Indonesia/KPPI) requesting for a safeguard measure against imports of wire of iron/non-alloy steel, 
plated with zinc, containing carbon less than 25 per cent by weight under HS code 7217.20.10.00. 
 
                                                      
1 A copy of the relevant resolution (PERATURAN MENTERI KEUANGAN NOMOR 
56/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/7 
G/SG/N/10/IDN/7 G/SG/N/11/IDN/6 
Page 2 
  
   The domestic industry claimed that a significant increased of imports of the subject good has 
caused serious injury the domestic industry.  The claim is based on information covering the period 
2006 to 2008, where a significant increase in import vol ume has an impact on serious injury to the 
domestic industry. 
 
1. Initiation of investigation 
 
 After examining the preliminary evidence that  has been provided by the domestic industry, 
the investigating authority decided to initiate an investigation, and individual notice sent to all 
interested parties and concerned government agenci es.  The Government of Indonesia also notified 
members of the WTO through the WTO Secretariat wh ich issued the notification on 5 February 2010 
(G/SG/N/6/IDN/8). 
 
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/8), the subject good of the investigation was wire of iron/non-alloy steel, 
plated with zinc, containing carbon less than 25 per cent by weight under HS code 7217.20.10.00. 
 
 Nevertheless, during the course of the investiga tion, the investigating authority found that the 
domestic industry only produces wire of iron/non-allo y steel, plated with zinc, containing carbon less 
than 25 per cent by weight; excluding size more th an 20 British Weight Gauge (BWG) or the diameter 
less than 0.89 mm, and the diameter 1.99 mm to 4.2 mm containing plated with zinc above 240 gr/m2, which is HS code Ex. 7217.20.10.00. 
 
 On the basis of the above mentioned finding,  the investigating authority focussed the 
investigation on the subject good under HS code Ex. 7217.20.10.00.  
3. Period of investigation 
 As submitted in the notification (G/SG/N/6/ IDN/7), period of investigation covers the 
calendar year 2006, 2007, and 2008.   However, in order to have a more comprehensive and recent 
analysis, the investigating authority  also evalua te the development of import volume in 2009 and the 
condition of the domestic industry in the same period.  
4. The domestic industry 
 The investigating authority confirmed that the domestic industry subject to investigation 
represents the whole industries producin g the subject good in Indonesia. 
 
5. Hearing 
 As required by Article 3.1 WTO Agreement on Safeguards, during the investigation period, 
the investigating authority has provided opportuni ties to importers, exporting countries delegation, 
and domestic industry, to submit their evidence a nd comments. The investigating authority received 
comments from Indonesian Iron and Steel Industry A ssociation (IISIA), CV. Putra Jaya, PT. Daya 
Cipta Andalan Persada, and
 Association of National Impor ter (Gabungan Importir Nasional 
Indonesi/GINSI). 
 
  G/SG/N/8/IDN/7 
 G/SG/N/10/IDN/7 
 G/SG/N/11/IDN/6 
 Page 3 
  
  B. I
NFORMATION ON INCREASE IN IMPORTS  
 On the basis of the result of analysis of the increase in imports of the subject good carried out 
over the period from 2006 to 2008, the investigation authority found that the import of the subject 
good has increased tremendously in absolute terms during the period.   
  As indicated in Table 1 there was a significant increase of imports, by 632 per cent from 2,147 tonnes in 2006 to 15,726 in 2007. There was further increased of the volume imports in 2008 by 81 per cent compared with 2007, although in 2009 th e imports has slightly decreased by 26 per cent. 
However the level of import in 2009 remained higher than the level of import in 2007. 
 
Table 1:  Volume of Imports of the Subject Good
 
Description Unit 2006 2007 2008 2009 
Imports Ton 2,147 15,726 28,448 21,070 
    Source :  Statistics Indonesia  
 
C. UNFORESEEN DEVELOPMENT  
 Increase in imports to the subject good could not be predicted, among others, by a number of 
FTA Agreements that has been agreed upon the Government of Indonesia with other countries. 
Moreover, economic and financial cr isis in 2008 effected the global economy to slow down, which 
resulted over-supply in some countries of the main suppliers, caused increased in exports from these 
countries to Indonesia. 
 
 Other than the abovementioned, cheap imports of the subject good has surge to the Indonesian 
market. Even though the price of imported subject good is above at 111 indexed points in 2007 which 
was higher of the price of the domestic industry at  101 indexed points in the same year, but it was 
lower in 2008 and 2009, where the price of impor ted subject good are 104 indexed points and 95 
indexed points, where as the price of the domestic  industry are 111 indexed points and 156 indexed 
points during the same year.   
 
D. EVIDENCE OF SERIOUS INJURY AND EFFECT OF INCREASED IMPORTS  
 Table 2 provides evidence on the condition of the domestic industry vis-à-vis sustain and 
significant increase of volume of imports during the period of investigation. 
 
(i) Although there was a increase of production of the domestic industry in 2007 from 
2006 by 15 indexed points, there were nega tive developments in the following years 
where the production in 2008 decreased by 38 indexed points compared with 2007, 
and 10 indexed points in 2009 compared with 2008.   
(ii) The development in domestic sales followe d the development in production where 
there was an  increased by 14 indexed points in 2007 compared with 2006, and 
decreased by 34 indexed points, and 13 indexed points in 2008 and  2009 respectively.  
(iii) The productivity in 2007 was greater by 27 indexed points than 2006, due to the 
layoff of the employee in the same period which caused  the domestic industry to be G/SG/N/8/IDN/7 
G/SG/N/10/IDN/7 G/SG/N/11/IDN/6 
Page 4 
  
  efficient. However, the domestic industry w as not able to maintain its productivity 
resulted in the decreased by 38 indexed point s in 2008, and further decreased by 10 
indexed points in 2009, despite the fact that the domestic industry further reduced the 
number of employees in 2008 and 2009.   
(iv) As the result of the domestic industry's e fforts to increase production, the capacity 
utilization increased from 9.7 per cent in 2006 to 11.2 per cent in 2007. However, the capacity utlization felt to 7.5 per cent in 2008, and further declined to 6.4 per cent in 
2009, as the production had decreas ed in the same period.  
(v) During the investigation, the authority also examined the inventory of the domestic 
industry and found that there was an increased of inventory from 148 indexed points in 2007 to 154 indexed points in 2008, and to 181 indexed points in 2009. The 
increase of inventory was caused by the loss of  market share resulted inability of the 
domestic industry to increase the domestic sales. 
(vi) The domestic industry suffered heavy financial losses from year to year due to    
substansial decrease of domestic sales and loss of market share taken by imports. The loss of market share and decreased of dom estic sale resulted in decrease in domestic 
production, capacity utilization, and significant increase in inventory. As the impact of the big financial losses suffered by the domestic industry, the number of employees 
has been reduced from year to year of  the period of the investigation.  
(vii)  As has already pointed out in Point vi  market share of the domestic industry 
decreased significantly. Based on the data co llected by the investigating authority, the 
national consumption has increased significantly during the period of 2006 to 2008, although there was a slight decreased in 2009. However, the market share of imports have increased parallel with the increase of volume of import and the increase of 
national consumption. This is an evidence that the market share of the domestic 
industry has been taken by imports of the subject good. 
 Referring to the abovementioned evaluation, th e investigating authority concluded that the 
domestic industry of the subject good experienced  negative development for production, domestic 
sales, productivity, inventory, capacity utilization, profitability, employment, and market share during 
the period of investigation. Taking into account of all of these factors, the investigating authority 
confirmed that the domestic industry suffered a serious injury. 
 
 
  G/SG/N/8/IDN/7 
 G/SG/N/10/IDN/7 
 G/SG/N/11/IDN/6 
 Page 5 
  
  Table 2:  Indicators of Serious Injury
 
YEAR NO DESCRIPTION UNIT 2006 2007 2008 2009 
1 Production Index 100 115 77 67 
2 Domestic Sales Index 100 114 80 67 
3 Productivity Index 100 127 89 79 
4 Capacity Utilization* %  9.7 11.2 7.5 6.4 
5 Profit and Loss Index 100 (18) (55) (42) 
6 Employment Index 100 91 86 85 
7 National Consumption Index 100 268 391 295 
8 Market Share of the Domestic 
Industry Index 100 43 20 23 
9 Market Share of Import Index 100 272 340 333 
*not an indexed points 
 
E. OTHER FACTORS THAT MAY CONTRIBUTE TO INJURY  
 In accordance with Article 4.2(b) of WT O Agreement on Safeguards, the investigating 
authority examined the following other known factors:  
 
1. Quality Of The Subject Good 
 Based on the verification of the investigati ng authority, it has found that the quality of the 
subject good of the domestic industry has the quality of  the international standards, which is compete 
with imports.  
 
2. Competition With Other Domestic Producers  
 There are no other domestic producers of the subject good in Indonesia, as they are all 
applicant. With this, it is clear that there is no competition with other domestic producers that caused 
serious injury to the domestic industry. 
 
F. CONCLUSION OF THE FINDING AND CAUSAL LINK 
  Referring to the findings as stated in Point D:  1) there were an increase of imports during the 
period of 2006 to 2009, 2) the domestic industry suffer ed a serious injury in the same period,  3) the 
market share of the domestic industry has been ta ken by the imports of the subject good. Based on 
findings the investigating authority has a strong evidence that there is a causal link between the 
serious injury of the domestic industry and the increase of volume of imports.     G/SG/N/8/IDN/7 
G/SG/N/10/IDN/7 G/SG/N/11/IDN/6 
Page 6 
  
  G. D
ESCRIPTION OF THE SAFEGUARDS MEASURE  
1. On the basis of the findings as  reffered to Point D, E, and F, the Government of Indonesia 
decided to impose  a safeguard  measure against impor ts of wire of iron/non-alloy steel, plated with 
zinc, containing carbon less than 25 per cent by weight; excluding size more than 20 British Weight 
Gauge (BWG) or the diameter less than 0.89 mm, and the diameter 1.99 mm to 4.2 mm containing plated with zinc above 240 gr/m 2 under HS code Ex. 7217.20.10.00. 
2. Consistent with Article 7.4 of the WT O Agreement on Safeguards, a progressive 
liberalization of  a safeguard measure in the form of specific duty will be imposed for 3 (three) years, 
with the following timetable:   
Table 3:  Timetable of the Safeguards Measure
 
Period Fixed Duty 
23 March 2011 – 22 March 2012 Rp. 6,658/Kg 
23 March 2012 – 22 March 2013 Rp. 5,643/Kg 
23 March 2013 – 22 March 2014 Rp. 4,629/Kg 
 
3. 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, 
shall be excluded from the imposition of the safeguard measure.  
4. Below is the list of developing countries ex cluded from the measures as they exported less 
than 3 per cent of total imports to Indonesia (A rticle 9.1 of the WTO Agreement on Safeguards).   G/SG/N/8/IDN/7 
 G/SG/N/10/IDN/7 
 G/SG/N/11/IDN/6 
 Page 7 
  
  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 Yugoslav Republic of Macedonia  
Bangladesh Gabon 
Barbados Georgia 
Belize Ghana 
Benin Grenada 
Bolivarian Republic of Venezuela  Guatamala 
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, Rep. of 
Colombia Kuwait 
Congo Kyrgyz Republic 
Costa Rica Lesotho 
Côte d'Ivoire Macao, China 
Croatia Madagascar 
Cuba Malawi 
Democratic Republic of the Congo Maldives 
Djibouti Mali 
Dominica Mauritania G/SG/N/8/IDN/7 
G/SG/N/10/IDN/7 G/SG/N/11/IDN/6 
Page 8 
  
   
COUNTRY  COUNTRY  
Mauritius Senegal 
Mexico Sierra Leone 
Moldova Solomon Islands 
Mongolia South Africa 
Morocco Sri Lanka 
Mozambique Suriname 
Myanmar Swaziland 
Namibia Chinese Taipei 
Nepal Tanzania 
Nicaragua Thailand 
Niger The Gambia 
Nigeria Togo 
Oman Tonga 
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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