The Indonesian Textile Industries Association (API) filed an application with KPPI on behalf of its members requesting for a safeguard measure against imports of bleached and unbleached woven fabric of cotton. As mentioned in the notification to the WTO on 16 July 2010, KPPI decided to initiate a safeguard investigation against imported woven fabric of cotton (HS codes 5208.11.00.00, 5208.12.00.00, 5208.13.00.00, 5208.19.00.00, 5208.23.00.00, 5208.29.00.00, 5209.29.00.00, 5210.11.00.00, 5211.11.00.00, 5211.12.00.00, and 5212.11.00.00).

The investigation revealed that the increased volume of imports of the goods have caused serious to the domestic industry that produced the like products. As such, the Minister of Finance issued Decree No. 58/PMK.011/2011 on 23 March 2011 which imposes a safeguard measure in the form of specific duty for 3 (three) years on the imported products, with progressive liberalization in the second and third years as shown in the table below.

Applying the de minimis rule, several developing countries with exports constituting less than 3 % of total imports to Indonesia are excluded from the measure, i.e. India, Sri Lanka, Thailand, and Vietnam. Similarly, some of the subject goods were also excluded due to their de minimis status, including HS codes: 5208.11.00.00, 5208.12.00.00, 5208.13.00.00, 5208.19.00.00, 5208.23.00.00, and 5208.29.00.00.