The appointment will include marketing for BMW's 7, 5 and 3 series, Z3 and X5 and upcoming model launches.
The assignment will be handled by Grey Worldwide, Grey Interactive, sales promotional arm G2, Grey Direct and media agency MediaCom.
Grey is believed to have pitched against the incumbent International Matari Ad, Lowe, Oxygen Communications and Kawan & Associates. International Matari previously handled BMW Indonesia's advertising brief as well as media purchasing.
Paulus B Suranto, head of marketing of PT BMW Indonesia, said: "Grey won the business based on a strong strategy derived from sound understanding of the consumer and the market."
Suranto said the group would handle the brand's advertising, point-of-sales materials, sales kits, brochures, events, sales promotion, direct marketing and interactive."