to Indonesian
a. that the implementation of commitment to liberalize trade under the Agreement Establishing the World Trade Organization through the reduction of tariffs and the abolition of non-tariff barriers may lead to an increase in the import of goods as to cause serious injury or threaten to cause serious injury to the domestic industry;
b. that the serious injury or threat of serious injury as meant in paragraph a can be prevented through national legislation on safeguard, so that the industry suffering injury can undertake structural adjustments consistent with the Agreement on Safeguards are intended in Law No. 7/1994 concerning the Ratification of the Agreement Establishing the World Trade Organization;
c. that based on the considerations as intended in paragraphs a and b it is deemed necessary to stipulate Presidential Decree concerning the Safeguard measure of the Domestic Industry Against The Impact of Surge in Imports.
1. Article 5, paragraph (2) of the 1945 Constitution as amended by fourth amendment to the 1945 Constitution;
2. Law No. 5/1984 concerning Industry (Statute Book of the Republic of Indonesia No. 22/1984, Supplement to Statute Book of the Republic of Indonesia No. 3274;
3. Law No. 7/1994 concerning the Ratification of the Agreement Establishing the World Trade Organization (Statute Book of the Republic of Indonesia No. 57/1994, Supplement to Statute Book of the Republic of Indonesia No. 3564);
4. Law No. 10/1995 concerning Customs (Statute Book of the Republic of Indonesia No. 75/1995, Supplement to Statute Book of the Republic of Indonesia No. 3612);
5. Government Regulation No. 17/1986 concerning the Authority for the Management and Development of Industry (Statute Book of the Republic of Indonesia No. 23/1986, Supplement to Statute Book of the Republic of Indonesia No. 3330).
PRESIDENTIAL DECREE CONCERNING THE SAFEGUARD MEASURE OF THE DOMESTIC INDUSTRY AGAINST THE IMPACT OF SURGE IN IMPORTS
In this Presidential Decree:
1. Safeguard Measure is the step taken by the government to redress serious injury and or prevent threat of serious injury faced by the domestic industry as a result of surge in the imports of like or directly competitive products, with the aim of enabling the domestic industry suffering from serious or threat of serious injury to undertake structural adjustments;
2. Serious injury is real lost suffered by the domestic industry;
3. Threat of serious injury is threaten for serious injury that is l suffered by the domestic industry;
4. Domestic industry is the whole producer of the like product or product directly compete with products subject to investigation, or producers whose collective output of the like product constitutes a major proportion of the total domestic production of the like product;
5. Like product is domestic product which is identical or alike in all respects to the product subject to investigation or having the same physical, technical or chemical characteristics as the product subject to investigation;
6. Directly competitive product is domestic product similar to or serving as a substitute for the product subject to investigation;
7. Product subject to investigation is product which imports have increased and to cause serious injury or are threatening to cause serious injury to the domestic industry;
8. Interested parties are:
10. Committee is a unit or agency fully authorized to conduct an investigation in accordance with this Presidential Decree;
11. Agreement on Safeguard is the Agreement on Safeguards as intended in the attachment to Law no. 7/1994 concerning the ratification of Agreement Establishing the World Trade Organization;
12. WTO is the World Trade Organization;
13. Committee on Safeguards is a unit under the preview of the WTO dealing with matters related to the implementation of an Agreement on Safeguard.
This Presidential Decree concerning the terms and procedures set Precautions to all the domestic industry suffered serious injury or threat of serious harm due to the import surge in either relative or absolute to enter the territory of Indonesia.
(1) Parties concerned may file an application to the Committee for an inquiry into the surge in imports that resulted in serious injury or threat of serious harm the domestic industry.
(2) The application as intended in paragraph (1) fitted to the data that at least the following:
(3) Within at the latest 30 (thirty) days after the receipt of properly documented application as intended in paragraph (2) by the Committee, based on the results of preliminary examination and prima facie evidence as contained in the application, the Committee shall issue a decision on:
(1) The Committee shall notify interested parties as intended in Article 3, paragraph (3) of a decision on whether or not to conduct an investigation together with the justification for the decision reached and announce it in the print media;
(2) With regard to the notification of the Committee on the justification as intended in paragraph (1), the interested parties shall be given a chance to respond to them if they are considered incorrect, no later than 15 (fifteen) days after the date of decision by the Committee;
(3) The Minister of Industry and Trade shall stipulate procedures for filing the application, notifying the interested parties of the decision and announcing the decision in the print media as intended in Article 3 and Article 4 paragraph (1).
A delay in the completion or a termination of an investigation shall be announced in the print media by including the justification for the delay supported by facts and shall be notified to the interested parties promptly.
The petitioners may withdraw the application for an investigation to the Committee.
(1) If the results of an investigation indicate that there is no clear evidence that the domestic industry has suffered from serious injury or threat of serious injury as a result of increased imports, the Committee shall terminate the investigation;
(2) Based on the decision of the Committee on the termination of an investigation, all provisional import duties paid by the importers of investigated product, which is subject to provisional safeguard measures as intended in Article 10 paragraph (2) shall be refunded to the importers concerned;
(3) Within at the latest 15 (fifteen) days after the Committee issued the decision on the termination of an investigation, the Minister of Finance shall revoke import duties based on the imposition of provisional safeguard measure on product subject to investigation;
(4) Refund of the duties as intended in paragraph (2) shall be made as soon as possible, no later than 15 (fifteen) days after the Minister of Finance issued the decision on the revocation of import duties as intended in paragraph (3);
(1) The Committee shall complete an investigation no later than 200 (two hundred) days after the issuance of a decision on the initiation of the investigation;
(2) If further information is needed for the purpose of supporting evidence, the Committee can send a list of written question to interested parties;
(3) Interested parties shall respond to the question raised as intended in paragraph (2) no later than 15 (fifteen) days; or 20 (twenty) days upon request by interested parties concerned after the date of the questions being sent by the Committee.
In case of:
(1) The Minister of Industry and Trade may recommend to the Minister of Finance the imposition of provisional safeguard measures;
(2) Based on the recommendation as intended in paragraph (1), the Minister of Finance shall determine the amount of import duty as a provisional safeguard measure;
(3) The provisional safeguard measure shall be imposed not more than 200 (two hundred) days.
(1) The provisional safeguard measures as intended in article 10, paragraph (2) shall be made public in the State Gazette and print media and be formally notified to the interested parties;
(2) The announcement in the State Gazette and print media as intended in paragraph (1) may include:
(1) Determination of serious injury or threat of serious injury suffered by the domestic industry as a result of Surge in Imports of product subject to investigation shall be based on the results of objective analysis of all relevant factors of the industry concerned, covering:
(2) To determine an increase in the import of product subject to investigation leading to threat of serious injury, the Committee shall analyze other factors than those as intended in paragraph (1), including:
(3) In case of serious injury or threat of serious injury occur at the same time as increase in the import of product subject to investigation due to other factors than those as intended in paragraphs (1) and (2), the serious injury or threat of serious injury shall not be attributed to the Surge in Imports of product subject to investigation.
A determination of the existence of threat of serious injury as a result of an increase in the import of product subject to investigation shall be based on facts and not merely on allegation, predictions or remote possibilities.
Committee are entitled to request the data and information directly to interested parties or other sources deemed appropriate, either agency/government or private institutions, for the purpose of gathering evidence and proof of interest in carrying out its authority in accordance with the provisions of this Presidential Decree.
The Committee can decide on evidence to be used for the best information available where during the investigation the interested parties:
(1) The Committee shall treat confidential data and information accordingly;
(2) The confidential data and information as intended in paragraph (1) shall not be disclosed without permission of the party submitting it;
(3) The interested party providing confidential data and information to the Committee shall enclose summaries of the confidential data and information;
(4) The Summaries as intended in paragraph (3) shall be non-confidential.
In the process of collecting evidence, the Committee shall provide equal opportunity to the interested parties to provide written evidence as well as additional written information or clarification to the Committee.
The Committee may verify data and information received from interested parties in the exporting country or the country of origin of product subject to investigation as well as from domestic industry.
(1) Before recommending a permanent safeguard measure, the Committee shall hold a public hearing;
(2) Interested parties to attend a hearing should provide name or name(s) of its representative to the Committee at the latest 7 (seven) days before the date of the public hearing;
(3) The Committee shall notify a public hearing schedule to the interested parties well in advance to enable the interested parties or its representative to attend the public hearing.
(1) The Committee shall recommend permanent safeguard measures;
(2) The recommendation on permanent safeguard measures as intended in paragraph (1) can be submitted only after the entire procedures for conducting an investigation have been completed and there are clear factual evidence that an increase in the imports of product subject to investigation proven to have caused serious injury or threat of serious injury to the domestic industry;
(3) The Committee shall notify the recommended permanent safeguard measures to interested parties no later than 10 (ten) days after the decision is taken and make an announcement in the State Gazette and or the printed media;
(4) The announcement in the State Gazette and or the print media as intended in paragraph (3) shall at least contain:
(1) The Committee submits the recommendation for permanent safeguard measures to the Minister of Industry and Trade;
(2) The permanent safeguard measures to be decided by the Minister of Finance in the form of import duty and or by the Minister of Industry and Trade in the form of quota.
(1) The permanent safeguard measures in the form of quota shall not be lower than the average import volume in the past 3 (three) years, unless there is clear justification that a lower quota or import volume is necessary to remedy or prevent from serious injury or threat of serious injury;
(2) If there are more than one countries exporting product subject to investigation to Indonesia, the import quotas specified shall be allocated among the exporting countries;
(3) The quotas as intended in paragraph (1) shall be allocated on a pro rata basis in accordance with the percentage of the average import from each exporting country in the last 3 (three) years.
(1) Permanent safeguard measures shall only be applied where it is considered necessary to remedy or prevent from serious injury or threat of serious injury and to provide a period for structural adjustment to the domestic industry suffering from serious injury or threat of serious injury;
(2) The application of safeguard measures as intended in paragraph (1) shall be a maximum of 4 (four) years and could be extended;
(3) Where safeguard measures have been applied for more than 3 (three) years, the Committee shall undertake an examination on safeguard measures and notify the interested parties of the results of the examination no later than 6 (six) months before the expiry date of the safeguard measures as intended in paragraph (2).
(1) The duration of safeguard measures could be extended upon the formal request of the domestic industry or at the initiative of the Committee if there is a clear justification that serious injury or threat of serious injury suffered by the domestic industry as a result of Surge in Imports of product subject to investigation will continue and the domestic industry is undergoing structural adjustments;
(2) An extended safeguard measures shall not be more restrictive than it was at the end of the previous period;
(3) The total duration of safeguard measures shall not exceed 10 (ten) years, including the period of provisional safeguard measures, the period of permanent safeguard measures and the extension period of permanent safeguard measures;
(4) The safeguard measures as intended in Article 21, paragraph (2) shall be gradually reduced or liberalized during the period of the permanent safeguard measures.
(1) No safeguard measures shall be applied again to the imported product which has been subject to such a measure;
(2) Exception to the provision in paragraph (1), permanent safeguard measures with a duration of 180 (one hundred and eighty) days may be imposed on imported products, if:
The Minister of Finance shall stipulate procedures for payment and refund of import duties as intended in Article 10, paragraph (2) and Article 21, paragraph (2).
Safeguard measures shall not be applied against a product originating in a developing country as long as its share of import of the product subject to investigation does not exceed 3% (three per cent), provided that developing country with less than 3% (three per cent) import share collectively account for not more than 9% (nine per cent) of the total import of the product subject to investigation.
The Committee shall notify the Committee on Safeguards of its decisions on safeguard measures, including:
(1) The Government may hold consultations upon request with countries having substantial interests in the product subject to investigation regarding the decisions notified by the Committee as intended in Article 28;
(2) The results of the consultation as intended in paragraph (1) shall be notified to the Committee on Safeguards.
The Committee is authorized to conduct investigations, postponement/ termination of investigations, and issue all decisions related to recommendations for modification or extension of the duration of safeguard measures as well as other decisions related to investigations on serious injury or threat of serious injury suffered by the domestic industry as a result of an increased import of the product subject to investigation.
In carrying out its functions and duties, the Committee shall abide to this Presidential Decree and other related laws and regulations.
(1) The Committee shall be led by a chairman and consist of representatives of:
(2) The number of members as intended in paragraph (1) shall not be even;
(3) The appointment and dismissal of the members of the Committee shall be stipulated by the Minister of Industry and Trade.
(1) In carrying out its functions and duties, the Committee shall be independent, shall not be influenced by other parties, and shall not withhold anything which by law does not require confidential treatment as intended in Article 16, paragraph (3) and paragraph (4) of this Presidential Decree;
(2) Any member of the Committee found disclosing confidential information shall be subject to sanction in accordance with the existing laws and regulations.
Implementing regulation required under this Presidential Decree shall be stipulated by the Minister of Industry and Trade.
For public notice purposes, this Presidential Decree shall be promulgated by placing it in the Statute Book of the Republic of Indonesia.
Stipulated in Jakarta
on 16 December 2002
THE PRESIDENT OF THE REPUBLIC OF INDONESIA
signed,
MEGAWATI SOEKARNOPUTRI
STATUTE BOOK OF THE REPUBLIC OF INDONESIA No. 133/2002