Toyota's vehicle exports from its manufacturing facilities in Indonesia are forecast to drop by 40-50 percent in 2020 due to the impact of the COVID-19 pandemic.

Speaking at an online workshop in Jakarta this week, President Director of PT Toyota Motor Manufacturing Indonesia (TMMIN) Warih Andang Tjahjono said the COVID-19 pandemic has been affecting the firm’s car production since April when domestic and export demand plummeted.

According to the Indonesian automobile manufacturers association (Gaikindo), the domestic consumption has decreased by 40 percent in 2020 to about 600,000 units, compared to 1.03 million units in 2019.

Meanwhile, exports have also declined as importing countries in the Middle East, South America and Africa have been also affected by the pandemic. It is estimated that the volume of exported cars will drop by 40 percent compared to 2019, reaching only 208,000 units.

TMMIN hoped that the Indonesian government will take measures to encourage its people to buy cars, as well as directly support the automotive industry such as reducing PPh21 tax to 30 percent so that the domestic market can grow in the two remaining quarters of 2020