The Indonesian Trade Security Committee (KPPI) started an investigation into the extension of trade safeguard measures on imports of carpets and other textile floor coverings on Friday (18/8). The investigation follows up on a request submitted by the Indonesian Textile Association (API) as an applicant on August 15, 2023 as an applicant representing PT Universal Carpet And Rugs, PT Classic Prima Carpet Industries, and PT Anugrah Esa Mulia. Imports of carpets and other textile floor coverings investigated by KPPI are included in tariff heading Chapter 57 with 64 8-digit Harmonized System (HS) numbers, according to the 2022 Indonesian Customs Tariff Book (BTKI).
"From the initial evidence of the request for an extension of the investigation submitted by the applicant, KPPI found facts that there were still serious losses or threats of serious loss experienced by the applicant and that structural adjustments were not yet optimal," said KPPI Chair Mardjoko in Jakarta, Tuesday (22/8).
Mardjoko explained that serious losses or threats of serious losses were evident from several indicators of worsening performance of the domestic industry during the 2020-2022 period.
"Threats of serious losses include decreased profits, production volume, domestic sales volume, used capacity, reduced number of workers, and increased supply. In addition, the applicant's market share in the domestic market has also decreased and the applicant still needs additional time to impose action. trade safeguards to optimally complete the structural adjustment program," said Mardjoko.
Trend Rising
Based on data from the Central Statistics Agency (BPS), over the past three years (2020-2022), there has been an increasing trend in the number of imports of carpets and other textile floor coverings, both in absolute terms and in relative terms, by 22.60 percent and 22.68 percent, respectively.
In 2022, the number of imports will increase by 170.85 percent compared to 2021. The main countries of origin for imports of carpets and other textile floor coverings come from Vietnam (with an import share of 40.30 percent), followed by Turkey (29.48 percent), Malaysia (9.96 percent), Japan (7.23 percent), China (6.26 percent), Thailand (3.17 percent), and other countries (3.60 percent).
In this regard, KPPI invites all interested parties to register with KPPI in writing no later than 15 days from the initiation date of the extension investigation or on September 1, 2023.
