Toyota Motor Manufacturing Indonesia (TMMI) started up operations at its new USD340 million assembly plant in Karawang in West Java in mid-March, producing the Etios Valco 1.2L small hatch-back.

TMMI is 95% owned by Japan’s Toyota Motor and 5% by local distributor PT Astra International, which control’s the brand’s distributor Toyota Astra Motor (TAM).

The inauguration ceremony last week was attended by Indonesian Industry Minister M S Hidayat, Japan’s Ambassador to Indonesia Yoshinori Katori, Toyota Motor CEO Takahiro Iwase and Toyota Astra Motor’s president-director Johnny Darmawan.

The plant has an initial output capacity of 70,000 units per year with 1,100 workers, but his will rise to 140,000 next year when a second shift will be introduced and new models added to the line-up.

Toyota’s existing plant, also in Karawang, has the capacity to produce 110,000 units per year. It makes the Innova mid-sized MPV and the Fortuner SUV. The company’s total output capacity therefore will rise to 250,000 units per year in 2014, from the current 180,000.

Toyota sold more than 406,000 vehicles in Indonesia last year, according to data released by industry association Gaikindo, most of which sourced from Astra Daihatsu Motor – a joint venture between Japan’s Daihatsu Motor and Astra International.