Speech of Prof. Milberg to Indonesian media in Jakarta

Key points of the speech of Professor Dr.-Ing. Joachim Milberg, Chairman
of the Board of Management of BMW AG in Jakarta: * With the
establishment of new subsidiaries such as PT BMW Indonesia earlier this
year, and the continuous expansion of existing sales outlets both at
home and abroad, BMW is pursuing the clear goal of further optimising
the market. A local subsidiary always means an enhancement of customer
service in the host country. * Asia remains an important growth
market. BMW has pursued a long-term strategic approach in this region
for many years now. In 1981, BMW was the first European automobile
manufacturer to enter the Japanese market with a subsidiary. * In 1995
and 1997 subsidiaries followed in South Korea and Thailand. As of this
year, BMW strengthened the sales network in Asia with new sales
subsidiaries in the Philippines and here in Indonesia. * The
significance of the Asian markets will increase in the future, because
Asia is developing into one of the most important regions for the world
economy. * This applies especially in view of the planned ASEAN Free
Trade Area AFTA, which will generate additional growth impulses. Its
realisation until 2003 would be of utmost importance. * In view of the
high growth potential for our premium products, the BMW Group is aiming
to occupy the position of leading premium manufacturer in the
automobile industry here in Asia, too. * Many companies have become
cautious in the wake of setbacks in the Asian markets in recent years.
Many have adopted a policy of 'wait and see'. BMW has chosen a
different way forward, because it believes more than ever in the future
of Asia. * This is why it is a logical step for the BMW Group to
further enhance its presence here by establishing subsidiaries. There
are indeed good reasons for increasing the BMW commitment in this
country particularly. * With a population of some 210 million,
Indonesia is the fourth largest nation in the world and thus offers BMW
enormous long-term growth potential. This is already borne out by
figures of the current financial year: in the first nine months of 2001
BMW increased deliveries to Indonesian customers by 30%. * BMW is also
confident that the new Indonesian government will tackle the economic
and social problems in this country purposefully and successfully,
setting the future course for sustained economic development. The first
signs of recovery are already apparent. BMW sees in Indonesia excellent
long term growth opportunities for its business. The full speech can
also be downloaded.