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                                                                    Exhibit 4.86

      AGREEMENT FOR PROCUREMENT AND INSTALLATION FOR OPTICAL ACCESS NETWORK
       (OAN) PROJECT PACKAGE-IV NO. K.TEL.397/HK.810/ITS-00/2006, DATED 18
                                  DECEMBER 2006

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Parties:              1.   Perusahaan Perseroan (Persero) PT Telekomunikasi
                           Indonesia, Tbk. ("TELKOM"); and

                      2.   Alcatel-Inti Consortium, Consisting of: (1) Alcatel
                           Shanghai Bell Co., Ltd.; and (2) PT Industri
                           Telekomunikasi Indonesia (Persero) ("ALCATEL-INTI
                           CONSORTIUM").

Scope of Agreement:   TELKOM has assigned and appointed ALCATEL-INTI CONSORTIUM
                      to execute OAN Project Package IV (DIVRE VI KALIMANTAN).

Obligation of
ALCATEL-INTI
CONSORTIUM:           1.   ALCATEL-INTI CONSORTIUM shall ensure the good
                           performance of OAN until the expiry of warranty
                           period;

                      2.   ALCATEL-INTI CONSORTIUM shall ensure all services
                           quality.

Assignment:           ALCATEL-INTI CONSORTIUM may not assign the right to any
                      party without the prior written consent of TELKOM. TELKOM
                      reserves the right to assign the agreement without prior
                      approval of ALCATEL-INTI CONSORTIUM to and investor
                      provided the investor gives ALCATEL-INTI CONSORTIUM
                      satisfactory payment assurances in accordance to this
                      agreement. TELKOM reserves the right to assign the
                      agreement, with the prior approval of the ALCATEL-INTI
                      CONSORTIUM to any of TELKOM's subsidiaries or related
                      companies.

Termination:          TELKOM shall be entitled to unilaterally, without any
                      claim from ALCATEL-INTI CONSORTIUM, terminate a part or
                      the entire agreement, if the following events occur:

                      1.   If ALCATEL-INTI CONSORTIUM fails to materially
                           execute the works or neglects to perform its
                           obligation;

                      2.   If ALCATEL-INTI CONSORTIUM becomes subject to
                           bankruptcy, insolvency, liquidation or winding up
                           proceedings;

                      3.   If ALCATEL-INTI CONSORTIUM is in material breach of
                           its obligation or repudiates this agreement;

                      4.   If the Project is failed during the acceptance test
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Dispute Resolution:   1.   Both parties shall use their best efforts and shall
                           co-operate and negotiate in good faith to resolve any
                           and all disputes;

                      2.   In the event that such disputes cannot be settled
                           amicably, the parties shall submit the dispute to
                           arbitration under the rules of the Indonesian
                           National Board of Arbitration ("BANI").

Governing Law:        The agreement is governed by, construed and interpreted in
                      accordance with the laws of the Republic of Indonesia.
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