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                                                                    EXHIBIT 10.1



CONTRACT AGREEMENT ON PROCUREMENT TELKOM-2 SATELLITE
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CONTRACT NAME  :  Procurement of Telkom - 2 Satelite
         NO    :  K.TEL. 191/HK.810/UTA-00/2002
         DATE  :  October 24th 2002


PARTIES        :  1. PT. Telekomunikasi Indonesia Tbk. -> reffered to as Telkom
                     Represented by Kristiono as the President Director and CEO;
                  2. Orbital Sciences Corporation -> reffered to as Contractor
                     Represented by Dr. Ali E. Atia as the President
                     Communication International.


SCOPE OF WORK
1.   Telkom has requirement to procure one (1) satellite, hereinafter reffered
     to as Telkom-2 Satelite;
2.   Telkom require the Contractor to :
     a.   store TELKOM-2 Satelite for a certain duration, take the satellite out
          of storage, proceed with all works for launching, and put the
          satellite in it's desired orbit;
     b.   provide information and service necessary for carrying out positioning
          and in-orbit performance verification of TELKOM-2 Satelite;
     c.   perform the positioning phase of TELKOM-2 Satelite, after it has
          injected into orbit;
     d.   modify and optimize the TELKOM's existing Master Control Station
          located at Cibinong, for controlling TELKOM-2 Satellite simultaneously
          with existing satellites namely: Palapa B2R, Palapa B4 and TELKOM-1.


PRICE AND PAYMENT
-    Price
     The total firm fixed price is US$73,000,000, but it inclusive refund
     provision in amount of US$4,338,292 to any transponder that has reduced
     communications capabilities below 3dB as agreed and which cannot be
     corrected by switching to a redundant transponders.
-    Payment
     a.   The total amount claims by the Contractor on each invoice shall be
          paid within thirty (30) calendar days from the date of the original
          invoice is received by TELKOM;
     b.   Payment to Contractor shall be made by electronic transfer, with a
          reference to the invoice number being paid in the detail section of
          the payment, to:
          Bank name         : Wells Fargo Bank
          Account name      : Orbital Sciences Corporation
          Account number    : 4950050062
          ABA number        : 121000248


TAX
-    All Indonesian taxes, duties, assessment or fees, including tariffs and
     value added taxes resulting from performance of this contract that are
     required by present of future laws or regulation in Indonesia shall be paid
     by TELKOM, except for any temporary imported goods that will not be owned
     by TELKOM and any taxes and or duties of Contractor's expatriates working
     in Indonesia shall be borne by Contractor;

-    The Contractor shall be responsible for taxes, duties, assessment or fees,
     including tariffs and value added taxes resulting from performance of this
     contract that are required by present of future laws or regulation in the
     USA including any interest or penalties related to such U.S. taxes and U.S.
     duties;


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CONTRACT AGREEMENT ON PROCUREMENT TELKOM-2 SATELLITE
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LAW-DISPUTES AND ARBITRATION
-    This contract shall be governed by and construed in accordance with the
     laws of England;
-    Except for breach of a Party's nondisclosure, confidentiality, or
     intellectual property obligations, in the event of any dispute, claim, or
     controversy arising under or related to this agreement, all disputes
     arising from this contract shall be finally and exclusively settled by
     arbitration conducted under the Rules of Conciliation and Arbitration of
     the United Nation Commission of International Trade Law (UNCITRAL Rules)
     before The London Court of International Arbitration (LCIA), which shall be
     appointing authority.


WARRANTY
-    The Contractor shall submit warranty bond to TELKOM for AMCS in the amount
     of US$ (10% of AMCS fixed firm price) in the form of unconditional bank
     guarantee/ Letter of Credit from U.S. affiliated bank in Indonesia, as
     selected by Contractor, and shall be submit to TELKOM at least 5 business
     days before starting Warranty Period;
-    This Warranty shall extend until the earlier of:
     a.   For the satellite: a period of 365 days from the time the satellite is
          placed into storage;
     b.   For the AMCS: a period of 365 days commencing from Final Acceptance of
          the satellite or from the time of launch failure, Total Loss or
          Constructive Total Loss of the satellite.
-    The Contractor warrants that all hardware, software and service of the
     Spacecraft and AMCS supplied hereunder will be free from any defect in
     material and workmanship and will conform to the relevant specifications
     and drawings as contained in this contract.


GOVERNMENT AUTHORIZATION AND CONTRACTOR'S GUARANTIES
-    Contractor shall use reasonable efforts to obtain Contractor's Government
     approvals and licenses necessary for export of any Export Licensed Items
     and Contractor's performance under this contract;
-    If after six months from the time contractor submits its application for a
     U.S. Government authorization for the export of the Satellite, technical
     data and the AMCS the U.S. Government fails to grant such Authorization
     subsequent to its grant, TELKOM may, in writing, notify the Contractor of
     its intention to terminate this Contract.


INSURANCE
-    The Contract price shall include in transit insurance for the satellite,
     Augmented Master Control Station (AMCS) and the other deliverable items
     that are transported from Contractor facility to the launch site or
     TELKOM's operation site; and also include insurance for the satellite
     during manufacturing, shipping and up to the launch Site until such time as
     risk of loss passes to TELKOM under this Contract. Contractor shall provide
     TELKOM with certificate of insurance for such coverage;
-    The Contractor shall provide all reasonable assistance to TELKOM from
     Contractor's Dulles, Virginia facility and or another location as agreed to
     by the Parties, in the event TELKOM decides to obtain launch insurance or
     in orbit insurance for the satellite, by making available contractor's, by
     making the Available Contractor personnel to support the technical
     presentations to insurance companies within the USA and by providing such
     reasonable documentation and reasonable inspections at Contractor's Dulles,
     Virginia facility as TELKOM insurance broker and insurance companies shall
     reasonably require in order to obtain insurance for the Satellite.