KPPI Investigates Extended Guard Measures Of Cigarette Paper Imports

Illustration - Hundreds of workers carry out hand-rolled kretek cigarettes production activities in one of the cigarette industries in Tulungagung, East Java. (ANTARA East Java/Desyan Sujarwoko)

JAKARTA - The Indonesian Trade Security Committee (KPPI) has begun to investigate the extension of the Trade Safety Measure (Safeguard Measures) on imports of non-porous plug wrap paper and paper on June 23, 2023. KPPI chairman Mardjoko said this investigation was a follow-up to the application from the Indonesian Pulp and Paper Association (APKI) representing PT Bukit Muria Jaya. The application was submitted on May 29, 2023. "From the initial evidence submitted, KPPI found the fact that there was a serious loss or the threat of serious losses experienced by the applicant," said Mardjoko in a written statement in Jakarta, Antara, Tuesday, July 4. The product consists of tariff posts 4813.20.21, 4813.20.23, 4813.20.31, ex4813.20.32, 4813.90.11, ex4813.90.19, 4813.90.91, and ex4813.90.99 in accordance with the 2022 Indonesian Customs Tariff Book (BTKI). Cigarette paper is a type of paper used as a tobacco wrapper and a mixture of cigarettes. Meanwhile, non-porous plug wrap paper is the outermost layer of cigarette plugs that wrap filters. Mardjoko said serious losses or serious loss threats can be seen from several indicators of domestic industrial performance that worsened during the 2020-2022 period. According to him, the losses include a trend of financial losses caused by a decrease in domestic sales and a decrease in the number of workers. "In addition, the applicant's market share in the domestic market has also decreased and the applicant still needs additional time to complete the structural adjustment program optimally," said Mardjoko. Imports of non-porous plug wrap paper and paper have continued to increase over the last three years (2020-2022) with a trend of 26.11 percent. In 2022, Indonesia's imports for these products were recorded at 12.558 tons, up 11.07 percent compared to 2021 which was recorded at 11.215 tons. Previously, in 2021, the import of this product experienced a significant increase of 42.03 percent from 2020 which was recorded at 7,896 tons. The main countries that import this product for Indonesia include Vietnam, Austria, China, Spain, and South Korea. In 2022, Vietnam is the main importing country of this product for Indonesia with a market share of 50 percent, followed by Austria (19 percent), China (18), Spain (7 percent), and South Korea (4 percent).

KPPI invites all parties with interests (interested parties) to register no later than 15 days from the start of the extension investigation.