Committee of Indonesia (KPPI), the Ministry of Trade since June 25, 2010 began an investigation security measures (safeguard) against the surging volume of goods imported yarn and woven fabrics
The inquiry focused on cotton yarn other than sewing thread or Other Than Cotton Yarn Sewing Thread and Weaving of Cotton Cloth or Woven Fabrics of Cotton.
This step is based on two requests from the Indonesian Textile Association (API), which represents the domestic industry to make security measures on increase the volume of imported goods.
"On June 22, 2010 API has filed a Petition for Safeguard for products of cotton yarn and fabrics to KPPI. KPPI has announced the petition on June 26, 2010," said Chairman Ade Sudrajat API.
KPPI have examined the petition and found preliminary evidence of a causal relationship between the increase in the volume of goods imports of cotton yarn other than sewing thread with a serious injury or threat of serious injury to domestic industry petitioners, and weave fabrics of cotton losses or even bankruptcy.
"In this era of free trade is a defensive safeguard domestic markets that need to be used when the domestic market began to show an excessive buildup of stocks," said Ade.
During these efforts to safeguard measures based on Presidential Decree Number 84 Year 2002 regarding Domestic Industry Safeguards cause of Increased Imports.
Also Minister of Industry and Trade of the Republic of Indonesia Number 84/MPP/Kep/2/2003 of Committee of Indonesia.
Decree of the Minister of Industry and Trade of the Republic of Indonesia Number 85/MPP/Kep/2/2003 on Procedures and Requirements for Application for Investigation of Domestic Industry Top Of the Cause of Increased Imports.