Toyota Astra Motor confirmed that it can finally move ahead with its “low-cost green cars”, after the Indonesian government completed the approval process of all related LCGC regulations.

The Toyota Agya and Daihatsu Ayla will be produced at a new purpose-built plant in Karawang, 70km east of Jakarta, by Astra Daihatsu Motor - Indonesia’s largest carmaker. 

The 130,000 unit/year plant was completed at the end of last year but so far it has only produced the Daihatsu Xenia and Toyota Avanza compact MPVs - Indonesia’s best-selling vehicles. 

The plant will now begin production of the Daihatsu and Toyota small cars, at an expected rate of 3,000 units and 5,000 units per month. A total of 30,000 units are expected to be delivered by the end of 2013.

The LCGCs qualify for discounts on luxury tax of between 25-100%, helping to keep prices low. There is already a substantial backlog of orders for these cars and a waiting list running into next year.

Prices are expected to range between IDR76m for the basic manual version of the Daihatsu Ayla to IDR120m for the automatic version of the Toyota Agya.