Jakarta (ANTARA News) - German pencil maker Faber Castell will continue to increase its investment in Indonesia through product diversification.
Faber Castell International Indonesia Managing Director Yandramin Halim said Faber Castell had invested tens of millions of US dollars in stages in the country since 1990.
"Indonesia has been chosen as its main investment target in Asia because it could produce international standard products while production cost in the country is also competitive," he said.
Other factors behind the decision are Indonesia`s population which is the third largest in the world after China and India and its manpower that has good capability and performance.
In view of these the principal company in Germany moved its plants in Britain to Indonesia in 1998 and its plant in Australia to the country in 2001.
"With the arrival of the two plants the company`s investment in Indonesia also rose," he said.
Faber Castell Indonesia at present has three factories namely in Bantargebang, Bekasi, producing 2B pencils, in Cibitung, Bekasi, producing color pencils and in Palembang, Sumatra, producing pencil ram materials, which were developed in stages since 1990.
He said Faber Castell International Indonesia now did not only produce pencils but also manage trading in 40 countries in Asia and Europe while "initially Indonesia is only for the location of the plants because of the low production cost."
Since 1998 1998 when the plant in Britain had difficulties and was then moved to Indonesia, it had not only become manufacturer but also a marketing office.
Pencils produced by Faber Castell are not only used by school children but also for drwing cartoons.(*)