Indonesian fabric defense measures public hearing situation
The Indonesian Defense Measures Committee (KPPI) previously announced on April 25, 2022, that it would launch an extended defense measure investigation into imported fabrics. KPPI held an online public hearing on this case on May 30, 2022. The economic team of the representative office in Indonesia also sent personnel to attend. The opinions of all parties present are as follows:
1. Vietnam: According to data submitted by the Indonesian Textile Industry Association, the import volume of the products involved in the case has decreased in 2020 and 2021, and they do not agree to extend the defense measures.
2. Malaysia: According to the data provided by the Indonesian Textile Industry Association, no serious losses have been seen in the applicant’s overall operations. Performance in 2021 has also grown, and Indonesia’s domestic industry performance has reached a healthy level, so they do not agree to extend the defense measures.
3. Taiwan, South Korea, Thailand, and Mexico: The public hearing only listened to the views of all parties and did not express opinions.
4. China and Japan are absent.
(1) Indonesian Textile Industry Association (Asosiasi Pertekstilan Indonesia), production Traders PT. Delta Merlin Dunia Textile, PT. Guna Jaya Sentosa, and PT. Badjatex all expressed support for this defensive measure and explained that due to the time-consuming import of new manufacturing machines, the progress of structural adjustment has only reached 50%, and it still takes time to continue. Industrial structure adjustment; in addition, the import volume of the products involved will still increase in 2021. We hope that KPPI will investigate again to help the Indonesian industry.
(2) Indonesian National Development Planning Agency (BAPPENAS): The import volume of the products involved in the case has dropped significantly in recent years, but the decrease in import volume has not been accompanied by the growth of the applicant’s performance.
(3) The Indonesian Business Competition Supervisory Commission (KPPU) made several observations, including: the recent decline in import volume was not accompanied by an increase in the applicant company’s performance and production, import volume The reasons for the decrease, the decline in the market share of imported products during the investigation period, and the failure to maximize the structural adjustment of applicants, etc. require KPPI to conduct an investigation in accordance with applicable WTO rules.
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