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                                                                    Exhibit 4.78

   PROCUREMENT AND INSTALLATION AGREEMENT ON EXPANSION OF INTERFACE VS.2, E1
     CIRCUIT, E1 PRA, CCS#7P, CLIP AND ENHANCEMENT OF PSTN CENTRAL EWSD NO:
              K.TEL.235/HK810/ITS-00/2006, DATED 27 SEPTEMBER 2006

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The Parties:            1.   TELKOM; and

                        2.   PT SIEMENS INDONESIA ("Siemens").

Date of Agreement:      27 September 2006.

Scope of Agreement:     Siemens has agreed to procure and install expansion of
                        interface VS.2, E1 Circuit, E1 PRA, CCS#7P, clip and
                        enhancement of PSTN central EWSD.

Obligation of
Siemens:                1.   Responsible for all risks occurring in the
                             implementation of the project;

                        2.   To obtain all necessary permits and licenses;

                        3.   To supervise all workers and to be responsible for
                             their health and safety;

                        4.   To provide sufficient equipment, including the
                             spare parts and infrastructure and also responsible
                             for the safety of such equipment and
                             infrastructure;

                        5.   To provide all procedures/installation manual,
                             system testing and integrated test;

                        6.   To submit a written report to TELKOM.

Obligation of TELKOM:   To ensure the availability of the project site.

Deadline of
Completion:             150 calendar days after 27 September 2006 and may be
                        extended.

Assignment:             Siemens may not assign the project, in whole or in part,
                        to a third party without prior written consent from
                        TELKOM.

Termination:            TELKOM may unilaterally terminate the agreement should
                        one of the following events occur:

                        1.   Siemens has not commenced the project after 14
                             calendar days since the signing of the agreement;

                        2.   When the work is delayed due to series of force
                             majeure events for more than 3 months;

                        3.   When the completion of the work exceeds by more
                             than 50% calendar days for each location and the
                             amount of penalty has reached 5% of total agreement
                             price;
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                        4.   The work is delayed by Siemens for more than
                             continuously 3 months not as result of force
                             majeure and also not also due to fault of TELKOM;

                        5.   Siemens is proven to have assigned the agreement to
                             a third party without prior written consent of
                             TELKOM.

Confidentiality:        Siemens shall keep the secrecy of all data including but
                        not limited to information, statement and other document
                        unless such information, statement and document has
                        already been published by TELKOM or Siemens has obtained
                        prior consent from TELKOM for the disclosure.

Settlement of
Dispute:                1.   Any disputes shall be settled amicably between
                             parties based upon good faith;

                        2.   If the parties are unable to settle the dispute
                             amicably, then the parties shall submit the dispute
                             to the Indonesian National Board of Arbitration
                             (BANI).

Governing Law:          The laws of the Republic of Indonesia.
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