   
  
G/SG/N/8/IDN/22/Suppl.1  
G/SG/N/10/IDN/22/Suppl.2  
 
24 October 20 22 
(22-7954) Page: 1/5 
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 OF THE EXTENSION OF THE EXISTING MEASURE  
INDONESIA  
Evaporators  
Supplement  
The following communication, dated and received on 21  October  2022, is being circulated at the 
request of the delegation of Indonesia.  
 
_______________  
 
 
Pursuant to Article 7.2 and Article 12.1(b) of the WTO Agreement on Safeguards, the Government 
of the Republic of Indonesia, hereby notifies the Committee on Safeguards the investigation findings 
concerning the extension of a safeguard measure against the importation of Evaporators.  
 
1  Evidence that the safeguard measure continues to be necessary to prevent or remedy 
serious injury or threat thereof and that the industry concerned is adjusti ng 
The Government of the Republic of Indonesia initiated an investiga tion on the extension of a 
safeguard measure on 2 August 2022  (G/SG/N/6/IDN/30/Suppl.1 ). The scope of the investigation 
was to decide whether the safeguard measure should be extended beyond 10 January 2023.  
 
To determine whether the safeguard measure continues to be necessary to prevent or remedy 
serious injury or threat thereof and whether the industry is adjusting, the Investigating Authority 
(Komite Pengamanan Perdagangan Indonesia /KPPI)  undertook a comprehensive analysis of a broad 
set of d ata from multiple sources: the evidence provided by the Applicant 's member industries in 
their questionnaire replies and written submissions, the information provided by interested parties 
(users, importers, exporting producers and exporting country govern ments) in their written 
submissions, as well as information available to the Investigating Authority including statistical 
databases and relevant publications.  
 
1.1  Economic performance of the Applicant  
To assess the economic performance of the Applicant, the developments of imports, and other 
relevant data included in its assessment, the Investigating Authority assessed the data for the 
period  2019-2021 ('the investigation period').  
  G/SG/N/8/IDN/22/Suppl.1 • G/SG/N/10/IDN/22/Suppl.2  
 
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  Description  Unit Year  Changes (%)  Trend (%) 
2019  2020  2021  19-20 20-21 19-21 
Domestic Sales  Index  100 86 90 (14.09)  4.47 (5.26)  
Production  Index  100 87 91 (13.28)  4.82 (4.66)  
Utilization Capacity  Index  100 79 83 (20.78)  4.82 (8.87)  
Employment  Index  100 98 82 (2.04)  (16.25)  (9.42)  
Productivity  Index  100 89 111 (11.47)  25.16  5.26 
Profit/Loss  Index  100 114 89 14.33  (22.55)  (5.90)  
Inventory  Index  100 107 122 7.33 13.33  10.29  
Source:  Verification Result  
a) Parallel with the decline in national consumption, domestic sales decreased with a trend 
of 5.26% during the investigation period. Domestic sales decreased from 100 index points 
in 2019 to 86 index points in 2020, or decreased by 14.09%. In 2021, Domestic sales increased 
slightly to 90 index points or increased by 4.47%.  
b) In line with the decline in domestic sales, production decreased with a trend of 4.66%. 
Production decreased 13.28%, or from 100 index points in 2019 to 87 index points in 2020, or 
decrease of 13.28%. In 2021, Production slightly increased to 91 index poin ts or 4.82%.  
c) With declining production, the utilization capacity experienced a downward trend of 8.87%. 
Utilization capacity decreased from 100 index points in 2019 to 79 index points in 2020, or 
decreased by 20.78%. Furthermore, the utilization capacity i ncreased slightly to 83 index points 
in 2021 or increased by 4.82%.  
d) During the period of 2019 -2021, the Applicant was forced to cut the number of its employees 
with a trend of 9.42% because the production experienced a downward trend of 4.66%. 
Employment c ontinues to decline, from 100 index points in 2019, decreasing to 98 index points 
and 82 index points respectively in 2020 and 2021.  
e) During the period of 2019 -2021, productivity increased slightly with a trend of 5.26% as a result 
of employment efficiency.  Productivity decreased from 100 index points in 2019 to 89 index 
points in 2020 and then increased to 111 index points in 2021.  
f) The applicant experienced a decline in profits with a trend of 5.90% during the period 
of 2019-2021. In 2020, the applicant enj oyed positive growth in its profit but it then moving 
backward again in 2021. The market share of the Applicant in the domestic market was seized 
by imported goods in 2021. It was even lower then its share in 2019.  
g) During the period of 2019 -2021, inventory  increased with a trend of 10.29%. In 2020 and 2021, 
inventories increased by 7.33% and 13.33%, respectively, due to a substantial number of 
products that could not be sold by the Applicant.  
Description  Unit Year  Changes (%)  Trend (%)  
2019  2020  2021  19-20 20-21 19-21 
National Consumption  Index  100 81 95 (19.08)  17.89  (2.33)  
Market Share of 
Imports  Index  100 94 106 (5.81)  12.09  2.75 
Market Share of 
Applicant  Index  100 106 94 6.16 (11.38)  (3.00)  
Non-Applicant 's Market 
Sales  Index  100 171 131 71.48  (23.76)  14.34  
Source:  Verification Result  
a) During the period of 2019 -2021, national consumption experienced a downward trend of 2.33%. 
In line with the decline in national consumption, domestic sales also decreased with a trend 
of 5.26%. On the contrary, the volume of imports experienced an increasing trend of  0.36%.  G/SG/N/8/IDN/22/Suppl.1 • G/SG/N/10/IDN/22/Suppl.2  
 
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  b) In the same period, the market share of the Applicant decreased with a trend of 3.00%, while 
the import market share experienced an increasing trend of 2.75%.  
c) In 2020, the volume of imports and domestic sales decreased by 23.78% and 14.09%, 
respectively, in line with the decline in national consumption by 19.08% compared to 2019.  
d) The above situation made the import market share decreased from 100 index points in 2019 
to 94 index points in 2020. However, the domestic market has been controlled by the applicant 
from 100 index points to 106 index points.  
e) In 2021, the volume of imports and domestic sales increased by 32.14% and 4.47%, 
respectively, in line with the increase in na tional consumption by 17.89%. Therefore, domestic 
market was controlled by import with an increasing share from 94 index points in 2020 to 106 
index points in 2021. Consequently, the Applicant 's market share decreased from 106 index 
points in 2020 to 94 in dex points in 2021.  
The indicators have demonstrated that the domestic industry has not fully recovered from the injury 
caused by imports. It can be concluded that the market share of imports seized and controlled the 
domestic market, which caused the thre at of serious injury to the applicant, as shown by the decline 
in domestic sales, production, capacity utilization, employment, profit, and the increase on 
inventory. If the initial safeguard measure is not extended, it will be difficult for the domestic i ndustry 
to compete with imports.  
 
1.2  Evidence that the industry concerned is adjusting  
The domestic industry has conducted adjustment plans aiming at increasing its technology, product 
innovation, production lines, product quality, cost efficiency, and market ing expansion. The 
realization of the structural adjustment program that has been carried out by the Applicant is as 
follows:  
 
Description  Target  Realization  
The Structural adjustment program  100%  62% 
Source:  Verification Result  
2  Information on whether there is an absolute increase in imports or an increase in 
imports relative to domestic production  
Description  Unit Year  Changes (%)  Trend (%)  
2019  2020  2021  19-20 20-21 19-21 
Volume of Imports  Ton 2,584  1,970  2,603  (23.78)  32.14  0.36 
Source:  Director General of Customs Ministry of Finance and processed  
As shown in the table above, in absolute terms, the volume of imports increased with a trend 
of 0.36% during the period of investigation, although it was slightly decreasing from 2,584 t ons 
in 2019 to 1,970 tons in 2020 . This is believed due to the initial safeguard that was just being 
imposed on 11 January 2020. In 2021, the volume of imports increased significantly from 1,970  tons 
in 2020 to 2,603 tons in 2021.  
 
Description  Unit Year  Changes (%)  Trend (%)  
2019  2020  2021  19-20 20-21 19-21 
Volume of Imports  Ton 2,584  1,970  2,603  (23.78)  32.14  0.36 
National Production  Index  100 86.75  90.92  (13.28)  4.82 (4.66)  
Imports Relative to 
National Production  Index  100 87.85  110.28  (12.11)  26.07  5.26 
Source:  Director General of Customs Ministry of Finance and Verification Result  G/SG/N/8/IDN/22/Suppl.1 • G/SG/N/10/IDN/22/Suppl.2  
 
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  Based on the table above, imports relative to the National Production during the period 
of 2019 - 2021 experienced an upward trend of 5.26%. Imports relative to the National production 
after the imposition of safeguard measures declined by 12.11% in 2020. However, the imports 
relative to the National production then significantly increased by 26.07% from 2020 to 2021.  
3  Precise description of the product  involved  
Evaporator in a type of roll -bond and fin that is part of refrigerators, freezers, and other refrigerating 
or freezing equipment", under the Indonesia Harmonized System (HS.) Code: Ex. 8418.99.10 in 
accordance with Indonesian Tariff Book (BTKI) 2 022. 
 
4  If the final measure is extended, a Member is encouraged to provide a written 
description of any part of the imported product that will no longer be subject to the 
measure  
Not applicable at this stage.  
 
5  Description of the proposed measure  
The propose d measure is in the form of ad valorem duty.  
 
6  Proposed date of introduction of the measure  
The proposed extension of the safeguard measure will come into effect on 11 January 2023.  
 
7  Expected duration of the measure  
The expected duration of the proposed ext ension of the safeguard measure is three years.  
 
8  Proposed date for the review  
Not Applicable.  
 
9  Expected timetable for progressive liberalization of the measure  
The measure will continue being progressively liberalized, at regular intervals, at the beginning of  
each period of application is as follows:  
Period  Safeguard Duty (%)  
1st Year (11 January 2023 - 10 January 2024)  12.5 
2nd Year (11 January 2024 - 10 January 2025)  11 
3rd Year (11 January 2025 - 10 January 2026)  9.5 
 
10  If the notification relates only to a finding of serious injury or threat thereof, and  
does not relate to a decision to apply or extend a safeguard measure.  
Pursuant to Article 7.2 and Article 12.1(b) of the WTO Agreement on Safeguards, the Government 
of the Republic of Indonesia hereby notifies the investigation findings concerning the extension of 
safeguard measures against the importation of Evaporators . This notification is made only for the 
findings of the investigation. Once the decision to extend the safeguard measure is made, it will be 
notified under Article 12.1(c) of the Agreement on Safeguards.  
11  Information relating to the extension of a safeguard me asure  
11.1  Evidence that the industry concerned is adjusting and that the safeguard measure 
continues to be necessary to prevent or remedy threat of serious injury.  
Provided in item 1.  
 G/SG/N/8/IDN/22/Suppl.1 • G/SG/N/10/IDN/22/Suppl.2  
 
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  11.2  Reference to the WTO document that notified the initial application of the measure.  
Pursuant to Article 12.1(c) of the WTO Agreement on Safeguards, on 24 January 2020, The 
Government of the Republic of Indonesia notified the Committee on Safeguards regarding the 
decision to impose safeguard measures on the imports of Evaporators on 24  January  2020 
(G/SG/N/10/IDN/22/Suppl.1  - G/SG/N/11/IDN/22 ). 
 
11.3  Duration of the measure from initial application till the date at which it will be 
extended  
The initial definitive safeguard measure is imposed for 3 years, from 11 January 2020 until 
10 January 2023. The extension of the safeguard measure is proposed to be imposed for 
another  3 years, until 10 January 2026.  
 
11.4  Precise description of the measure in place prior to the date of extension  
The initial definitive measure was notified on 24 January 2 020 ( G/SG/N/10/IDN/22/Suppl.1  - 
G/SG/N/11/IDN/22 ). 
 
12  Information relating to exporting members  
12.1  The major exporting Members of imports of the product involved  
The main exporting countries of the product concerned are the People's Republic of China, Egypt, 
and Thailand.  
 
12.2  If there are any exporting Members to which the measure does not apply for any 
reason other than the application of Article 9.1, the names of such exporting Members 
and reasons for non -application of the measure  
Not applicable  
 
13  Invit ation of Consultations  
Members who have a substantial interest in the Subject Goods shall submit a written request of 
consultation within a period of 7 days from the date of circulation of this notification . All written 
requests must be sent both in a writ ten letter and in electronic format and must indicate the name, 
address, e -mail address, phone, and fax number of the Members.  
 
In accordance with Article 12.3 WTO Agreement on Safeguard, the Government of the Republic 
of Indonesia is open for consultation  in order to provide opportunities for those Members, 
consultation is scheduled to be held no later than 11 November 2022.  
The contact information for correspondence is:  
 
DIRECTORATE OF WORLD TRADE ORGANIZATION NEGOTIATIONS, MINISTRY OF TRADE  
Jl. M.I. Ridwan Rais No.5, Building 2, 9th floor, Jakarta 10110  
Phone: (62 -21) 3840139  
Fax: (62 -21) 3840139  
E-mail: dit.multilateral.ppi@kemendag.go.id  
 
14  Members are encouraged to attach, in an electronic fo rm, publicly available 
document(s) containing the relevant decision(s) made by the competent authority  
The non -confidential version of the Final Report of this investigation can be found on the website of 
the Indonesian Safeguard Committee: www.kppi.kemendag.go.id  
 
__________  