Those Who Want To Buy Fast Cars, Toyota Will Cut Production By 40 Due To The World Chip Crisis

Illustration (Photo: Doc. Antara)

JAKARTA - The world automotive manufacturer Toyota is reportedly planning to cut global production to almost half of its total capacity so far. This was revealed in a report from the Ministry of Finance (Kemenkeu) which was launched today.

Hidayat Amir, Head of the Center for Macroeconomic Policy at the Ministry of Finance, said that the projection could not be separated from the current world conditions which are experiencing difficulties in obtaining semiconductor products (chips).

“The car industry is listed as one of the industries that has been affected by the (scarcity of chips). This can be seen from the Toyota company which will reduce global production by 40 percent," he said in the Indonesian Industry Opportunity webinar related to the Global Chip Shortage issue, Tuesday, August 31.

According to Hidayat, the global semiconductor industry will continue a positive trend until the second quarter of 2021.

"This is driven by high demand for chips for the production of electronic goods such as computers and cars," he said.

However, he assessed that the high demand for chips could not be met by the supply on the market, resulting in a shortage and even a global chip crisis.

"Some companies that use chips as input goods are forced to reduce or delay their production," he said.

Hidayat added, it is believed that the global chip crisis will not be over in the near future and is expected to last for the next few years.

“We predict that this chip shortage will still occur in the next few years. The tension between the US and China regarding cybersecurity issues can also be an obstacle in this situation," he explained.

On the same occasion, the Director General of the Metal, Machinery, Transportation and Electronic Equipment Industry (ILMATE) of the Ministry of Industry, Taufiek Bawazier, said that the world supply chain experienced inequality because chips were only produced by a few countries.

"The world chip industry is only produced by a few countries, Taiwan, South Korea, the US, China, Japan, Germany, Switzerland, the Netherlands, Singapore and Malaysia," he said.

The subordinate of the Minister of Industry, Agus Gumiwang Kartasasmita, revealed that the chip commodity is now being used as a separate bargaining power in the political field.

“Countries that produce chips protect themselves because they are high-tech, and have their own political bargaining power. This is the condition that drives chips into scarcity now," he said.