The operation, which will initially focus on strategic database marketing, is headed by Mohammed Sirajuddeen as managing director. He was previously the regional director, CRM, at Euro RSCG.
Sirajuddeen said he moved from a regional to a national role because he wanted to take up the "challenge of setting up a database marketing office in Indonesia".
He added: "Indonesia is a market with tremendous opportunities, yet the major advertising networks have under-invested here. Strategic database marketing is almost non-existent and marketers are calling for it."
His appointment marks his return to Indonesia, where he was deputy general manager at Rapp Collins prior to his posting at Euro.
Sirajuddeen stressed that a more focused approach was needed in direct marketing, because media was fragmenting while clients are increasingly looking at return on investment.
Wunderman Asia-Pacific president Mike Langton said that the new office was a long-term investment because he believed that Indonesia would become a key market in the near future.