Indonesia: Extension of safeguard measures on EPS resin

On November 25, 2024, Indonesia notified the WTO Committee on Safeguards about its findings regarding the extension of a safeguard measure on imports of Expansible Polystyrene (EPS). The investigation, initiated on July 22nd, 2024, and assessed whether the measure remains necessary to prevent or remedy serious injury to the domestic industry. Despite a decrease in imports, the domestic industry continues to face challenges, with declining production, sales, and profits. The industry has made some structural adjustments, but further time is needed to complete these efforts. The proposed extension of the safeguard measure includes a specific duty on imports, set to begin on December 23, 2024, and will last for three years with progressive liberalization. Major exporters of EPS to Indonesia include Taiwan, China, and Vietnam. Indonesia is open to consultations with interested WTO members regarding this measure.

The investigation aimed to assess whether the safeguard measure is still necessary to prevent or remedy serious injury to the domestic industry and whether the industry is adjusting. The main exporting countries of the product concerned are Taiwan, China and Vietnam.

HS:

3903.22.10

under HS 2022 Version (Indonesia Customs Tariff Book 2022)

The domestic industry's production, sales, productivity, and capacity utilization declined during the investigation period (2021-2023). Profits decreased by 9%, while employment levels remained stable.

The domestic industry has made some structural adjustments, including building production facilities and warehouses, purchasing new machinery, and developing new product grades. However, only 35% of the adjustment program has been realized.

There was a decline in EPS imports both in absolute and relative terms during the investigation period. Despite this, the domestic industry continues to face a threat of serious injury.

According 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 Expandable polystyrene (EPS) in granular form. 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.

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

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