Heaptalk, Jakarta — The Indonesian Trade Safeguard Committee (KPPI) on Monday, (July 22) initiated an investigation into the extension of Trade Safeguard Measures (BMTP) against imports of expandable polystyrene (EPS) with the 8-digit harmonized system (HS) code 3903.11.10 based on the Indonesian Customs Tariff Book (BTKI) for 2022.
The investigation is being conducted on EPS imports from Indonesia’s three main import countries for this product: Taiwan, China, and Vietnam. KPPI initiated the extension investigation after receiving an official request from PT Kofuku Plastic Indonesia (PT KPI) on June 21, 2024. KPPI Chairperson Franciska Simanjuntak stated that KPPI found initial evidence of serious injury or threat of serious injury experienced by the applicant.
“Based on the initial evidence of the extension investigation request submitted by the applicant, the serious injury or threat of serious injury is seen from several indicators of the domestic industry’s performance deteriorating from 2021–2023. These include declines in production, domestic sales, productivity, capacity utilization, and profit. The applicant still needs additional time to complete its structural adjustments optimally,” explained Franciska.
Franciska added, “PT KPI has informed us that the realization of the structural adjustment program to date has only reached 27.74%. According to PT KPI in its request, this realization is considered small because the three-year period, as in the previous BMTP imposition, did not provide enough time for the domestic industry to make structural adjustments. Therefore, the applicant requests KPPI to extend the BMTP imposition so that PT KPI can complete its structural adjustment program and compete with imported goods.”
In 2023, the largest imports of expandable polystyrene came from Taiwan, with an import share of 47.09%, followed by China and Vietnam, with import shares of 37.56% and 13.36%, respectively. Apart from these three countries, the import share from developing countries was still below 3% of total imports in the same year.
In this regard, KPPI invites all interested parties to register as interested parties to participate in the hearing no later than August 1, 2024.
