Document:

<PAGE>
                                                                    Exhibit 4.27

                             PARTNERSHIP AGREEMENT
                                      FOR
                        PROCUREMENT AND CONSTRUCTION OF
                REGIONAL METRO JUNCTION AND OPTIC ACCESS NETWORK
                           FOR REGIONAL DIVISION III

                                    BETWEEN

                       PT TELEKOMUNIKASI INDONESIA, TBK.

                                      AND

                 PT INDUSTRI TELEKOMUNIKASI INDONESIA (PERSERO)

                        NO.K.TEL 241/HK.810/UTA-00/2003

                            DATED NOVEMBER 12, 2003
<PAGE>

                              PARTNERSHIP AGREEMENT
                                       FOR
                         PROCUREMENT AND CONSTRUCTION OF
                REGIONAL METRO JUNCTION AND OPTIC ACCESS NETWORK
                            FOR REGIONAL DIVISION III
                     BETWEEN PT TELKOMUNIKASI INDONESIA, TBK
                                       AND
                 PT INDUSTRI TELEKOMUNIKASI INDONESIA (PERSERO)

                        NO. K.TEL.241/HK.810/UTA-00/2003

THIS PARTNERSHIP AGREEMENT ("Agreement") is made in Bandung on this day,
Wednesday, the twelfth day of November two thousand three (12-11-2003), by and
between:

I.       PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA, Tbk., a
         telecommunication network and service operator company established
         pursuant to the laws of the Republic of Indonesia, having its
         headquarters on Jalan Japati No. 1, Bandung, in this matter duly
         represented by Kristiono in his capacity as the President Director,
         hereinafter referred to as "TELKOM"; and

II.      PT INDUSTRI TELEKOMUNIKASI INDONESIA (PERSERO), a limited liability
         company established pursuant to the laws of the Republic of Indonesia,
         having its head office on Jalan Mohamad Toha No. 77, Bandung, in this
         matter duly represented by John Welly in his capacity as the President
         Director, hereinafter referred to as "PARTNER".

(TELKOM and PARTNER individually referred to as the "Party", and collectively as
the "Parties").

WITNESSETH:

a.       TELKOM is a leading telecommunications services operator company that
         provides wireline telecommunications facilities in Indonesia;

b.       TELKOM has initiated a significant investment program for the purpose
         of modernizing and expanding its network infrastructure;

c.       PARTNER is a company with telecommunication infrastructure expertise
         that has the required technical expertise and financial resources in
         performing the Project;

d.       In its letter No. TEL.785/LG.210/TCC-00/2003 of 19 September 2003,
         TELKOM requested PARTNER to submit a quotation for the procurement and
         construction of Regional Metro Junction and Optic Access Network at
         Regional Division III;

<PAGE>

e.       In its letter No. 2043/NG.01/102010/2003 of 30 September 2003, PARTNER
         submitted to TELKOM a quotation for the work as referred to in
         paragraph d. above;

f.       In its letter No. TEL.885/LG000/TCC-00/2003 of 5 November 2003, TELKOM
         appointed PARTNER to perform the procurement and construction of
         Regional Metro Junction and Optic Access Network at Regional Division
         III with the initial price of USD 6,479,991.65 and Rp
         112,426,656,406.18, exclusive of 10%VAT;

g.       In its letter No. 2040/ST.06/320020/2003 of 5 October 2003, PARTNER
         expressed its willingness and agreed to accept and perform the work as
         referred to in paragraph f. above;

IN WITNESS WHEREOF, the Parties have agreed to enter into this Agreement subject
to the terms and conditions as follows:

CHAPTER I
GENERAL TERMS AND CONDITIONS

ARTICLE 1
DEFINITIONS

1.1      Unless the context requires otherwise, the following expressions shall
         have the meanings as follows:

         a.       BILL OF QUANTITIES (BoQ) means the bill of quantities set
                  forth in Schedule 1, as may be modified from time to time
                  pursuant to Articles 3.3 and 43;

         b.       BUSINESS DAY means a day, other than Saturday, Sunday or any
                  public holiday in Indonesia as determined by the government;

         c.       AGREEMENT means this Agreement and its schedules and
                  amendments;

         d.       WORK means all and any work under the scope of this Agreement
                  including survey, design and engineering plan, calculation and
                  procurement of materials, manufacturing, packaging and
                  transportation, construction and installation, testing,
                  integration within Sub-System supplied, integration between
                  the Existing System and the System supplied, documentation,
                  warranty and delivery of the procurement and installation of
                  Regional Metro Junction and Optic Access Network System and
                  Sub-System at Regional Division III, where TELKOM accepts the
                  ready-for-use delivery by taking into account the volume and
                  scope of work agreed to by TELKOM and PARTNER as referred to
                  in Schedule 5 (Scope of Work and Technical Specification);

                                        2
<PAGE>

         e.       CONTRACT VALUE means the overall value of all Purchase Orders
                  and with respect to each Purchase Order, the total payment (in
                  USD or IDR, as the case may be) to be made by TELKOM to
                  PARTNER under each Purchase Order for all Deliverables to be
                  supplied thereunder and for the full and diligent performance
                  by PARTNER of all of its obligations and covenants under this
                  Agreement, including all amounts payable to PARTNER to use or
                  procure licenses for rights to software and Documentation, and
                  for expenses for insurance and transportation and any other
                  expenses under this Agreement, subject to any change expressly
                  permitted under this Agreement or the respective Purchase
                  Order;

         f.       DELIVERABLES means the equipment, components, software and
                  Documentation to be delivered and all related services to be
                  performed by PARTNER pursuant to Purchase Order(s);

         g.       PURCHASE ORDER means a document issued by TELKOM from time to
                  time pursuant to Article 25 and acknowledged by PARTNER for
                  the supply and Commissioning by PARTNER of all or parts of the
                  System and/or for the provision of services. Any attachments
                  or appendices to a Purchase Order and any amendments to a
                  Purchase Order in accordance with Article 43 shall form an
                  integral part of the Purchase Order;

         h.       TECHNICAL SPECIFICATION means collectively, the technical
                  specification set forth in Schedule 5, and the applicable
                  specification issued by each manufacturer and all
                  specifications agreed pursuant to amendments to this Agreement
                  or a Purchase Order;

         i.       TOTAL SYSTEM means the whole Ring System from Regional Metro
                  Junction and Optic Access Network at the Regional Division III
                  supplied and integrated each other, and may function in
                  accordance with the Technical Specification set forth in
                  Schedule 5, to be delivered by PARTNER to TELKOM for
                  commercial operation;

         j.       RING SYSTEM means two or more Sub-Ring Systems supplied
                  consisting of Fiber Optic Cable, Transmission Equipment, Power
                  Supply and buildings and the related supporting facilities
                  consisting of one or more Sub-Ring Systems ready for
                  operation;

         k.       SUB-RING SYSTEM/ SUB SUB-RING SYSTEM means the equipment that
                  is complete, properly installed, well-functioned, and ready
                  for use based on location;

         l.       NMS SYSTEM means the implementation of the Network Management
                  System and Integration both in the Ring System level and the
                  Sub-Ring System level;

                                        3
<PAGE>

         m.       LOCATION means location(s) where the Equipment is to be
                  delivered, installed, inspected, tested and transferred, and
                  where the Work is to be performed by PARTNER as referred to in
                  Schedule 2;

         n.       EXISTING SYSTEM means the whole Regional Metro Junction system
                  and Optic Access Network owned by TELKOM existing and
                  operating at Divre III;

         o.       EQUIPMENT means all devices (hardware or software), cables,
                  tools, drawings, manuals, documents and so forth to be
                  provided by PARTNER to TELKOM under this Agreement;

         p.       INTEGRATION means the connection between the Total System and
                  the Existing System and may function properly;

         q.       INFORMATION means any data and writing relating to this
                  Agreement, including without limitation drawings, technology,
                  data and so forth;

         r.       ACCEPTANCE TEST means the physical and visual checking of the
                  installation and materials, testing of the Equipment at each
                  Ring System or Sub-Ring System for the proper function of the
                  Equipment installed as referred to in Article 13 of this
                  Agreement;

         s.       PARTIAL ACCEPTANCE TEST means an Acceptance Test conducted to
                  the System Ring or the Sub-Ring System;

         t.       ACCEPTANCE TEST REPORT means a document in writing made and
                  signed by the Parties through their authorized
                  representatives, stating that the Acceptance Test or the
                  Partial Acceptance Test is complete by setting forth the
                  result;

         u.       BAST-I means the First Acceptance Certificate stating that the
                  Acceptance Test of the whole Work under the relevant Purchase
                  Order is successfully complete and accepted by TELKOM;

         v.       BAST-II means the Second Acceptance Certificate for the whole
                  Work under the relevant Purchase Order stating that PARTNER
                  has meet all of its obligations, there is no outstanding work
                  relating to the performance and reliability of the whole Work
                  during the Maintenance Period under this Agreement;

         w.       SUB-CONTRACTOR means any party(s) (other than PARTNER) to whom
                  any part of the Work has been subcontracted by PARTNER, with a
                  prior written notice to TELKOM, and shall include any
                  permitted representative or assignee of such party(s);

         x.       COMMISSIONING means activities to be done by PARTNER for
                  preparation of the Acceptance Test;

                                       4
<PAGE>

         y.       MAINTENANCE PERIOD means a duration of twelve (12) months
                  since BAST - I;

         z.       EFFECTIVE DATE OF CONTRACT (EDC) means the date that all
                  provisions of Article 51 have been met;

         aa.      COMMERCIAL OPERATION means an operation where TELKOM has been
                  ready to provide services to both internal and external
                  customers (e.g., transmission of voice, data or multimedia)
                  for any part or the whole Ring System or the Sub-Ring System.

ARTICLE 2
GENERAL CONDITIONS

2.1      If any provision of this Agreement or any part thereof is determined to
         be invalid or unenforceable under the laws to which such provision is
         subject to, such invalidity or unenforceability shall in no way affect
         or impair the remaining provisions of this Agreement.

2.2      Failure or delay on the part of any Party hereto to exercise its rights
         under this Agreement shall not be considered to be a repudiation or
         waiver thereof, and shall not preclude any other or further exercise
         thereof.

ARTICLE 3
SCOPE OF WORK

3.1      Scope of Work under this Agreement shall cover the procurement and
         construction of the Regional Metro Junction and Optic Access Network at
         the Regional Division III, Network Management System, and services of
         PARTNER at the Regional Division III in accordance with configuration,
         capacity planning, Bill of Quantity, Technical Specification as set
         forth in Schedule 5 (Scope of Work and Technical Specification).

3.2      For purposes of performance of the Work, PARTNER shall perform the
         following:

         a.       Survey, design and engineering plan;

         b.       Procurement and/or manufacture of the Equipment and delivery
                  of the Equipment to Locations;

         c.       Implementation, Testing and Commissioning, Integration of the
                  Ring System and Sub-Ring System into the Existing System;

         d.       Provide the Maintenance Period of one (1) year after BAST - I
                  and after sales services;

         e.       provide an All-Risk Insurance;

                                       5
<PAGE>

         f.       Provide training and internship.

3.3      Scope of Work shall be adjusted and performed based upon any amendment
         to this Agreement:

         a.       after the detailed survey, design and engineering are complete
                  and approved by TELKOM; and

         b.       after the actual Bill of Quantity are complete and approved by
                  TELKOM.

3.4      This Agreement is a contract covering various steps involved in the
         Project on a Turnkey basis.

3.5      "Turnkey basis" means that pursuant to the Scope of Work, based upon
         the effective date of this Agreement, once PARTNER receives a Purchase
         Order, PARTNER shall be solely responsible for the survey, design,
         development, manufacture, delivery, supply, installation, integration
         and management of the Network, and the remedying of any defects, so as
         to make the Network ready for service. PARTNER shall also do everything
         necessary and reasonable in connection with this Agreement, where
         PARTNER shall perform all of its obligations under this Agreement.

3.6      PARTNER shall perform the work based upon a Purchase Order pursuant to
         Schedule 3 (Implementation Schedule and Deployment Plan) and finish
         every stages of work on the date or time determined.

ARTICLE 4
TERM AND PERFORMANCE LOCATIONS OF WORK

4.1      Work. The Work of procurement and construction of the Regional Metro
         Junction and Optic Access Network at the Regional Division III shall be
         performed and finished in whole within 26 (twenty six) months since the
         Effective Date of Contract.

4.2      Work Locations. The Work shall be performed at the Regional Division
         III as set forth in Schedule 2 to this Agreement.

4.3      Delay. In case PARTNER is behind schedule in performing the Work as
         referred to in Articles 4.1 and 4.2, PARTNER shall be imposed a penalty
         as regulated in Article 35 of this Agreement.

4.4      If such delay is due to (i) the agreement between PARTNER and TELKOM to
         modify the Work as referred to in Article 43, or (ii) any third party
         not appointed or selected by PARTNER, or (iii) Force Majeure, PARTNER
         shall be permitted to extend the term of completion of the Work on
         TELKOM's consent.

                                       6
<PAGE>

ARTICLE 5
SITE PREPARATION, ACQUISITION, RIGHTS OF WAY AND PERMITS

5.1      The Parties shall be responsible for preparing the Locations/Sites
         where the Deliverables are to be installed in accordance with Schedule
         2.

5.2      PARTNER shall in coordination with TELKOM perform, arrange and procure
         all permits required to perform the work for and on behalf of TELKOM,
         such as installation permits, rights of way, Ijin Mendirikan
         Bangunan/IMB (Right to Establish Building) and other necessary permits
         from the local government or other parties, and all duties required to
         ensure the Locations/Sites preparation for performance of the Work.
         Costs for procuring the permits are included in the unit price and
         shall not be priced separately.

5.3      In case of any loss or delay in the granting of licenses, dispensations
         or permits by public officers, which may affect the Implementation
         Schedule, with the condition that all provisions have been fulfilled by
         PARTNER, and after TELKOM gives its assistance, the Parties agree to
         extend the performance period.

ARTICLE 6
SCHEDULES

6.1      Schedules. The following documents shall be enclosed to and constitute
         an integral part of this Agreement.

         Schedule 1        Recapitulation and Breakdown of Price & Bill of
                           Quantity

         Schedule 2        Designs of the Ring System, Sub-Ring System and Sub
                           Sub-Ring System

         Schedule 3        Implementation Schedule and Project Management

         Schedule 4        Minutes of Clarification Meeting and Negotiation

         Schedule 5        Scope of Work and Technical Specification

         Schedule 6        Proposal Documents

         Schedule 7        Purchase Order Form

         Schedule 8        Appointment Letter to PARTNER

         Schedule 9        Letter of Acceptance from PARTNER

         Schedule 10       Training Syllabus

         Schedule 11       Procedures for Acceptance Test

         Schedule 12       Project Management

         Schedule 13       MOU between PARTNER and Sub-Contractor and List of
                           Sub-Contractors and Suppliers

         Schedule 14       Performance Bond and Maintenance Bond Form

         Schedule 15       Confidentiality Agreement

6.2      Inconsistency. In case of any inconsistency between this Agreement and
         its Schedules, the provisions of this Agreement shall prevail.

                                       7
<PAGE>

CHAPTER 2
TECHNICAL TERMS AND CONDITIONS

ARTICLE 7
TECHNICAL CONDITIONS

The Work hereunder shall be performed in accordance with Technical Specification
set forth in Schedule 5 to this Agreement.

ARTICLE 8
QUALITY WARRANTY

8.1      PARTNER shall make all reasonable efforts to ensure TELKOM's rights to
         inspect production and installation phases of its sub-contractors.
         PARTNER shall cooperate with TELKOM in case TELKOM at its own expense
         opts to conduct such inspection.

8.2      In so far as any equipment or component thereof is produced by a
         sub-contractor working for PARTNER, PARTNER shall make all reasonable
         endeavors to include similar provisions in its contract with the
         sub-contractor in order to enable TELKOM to perform inspections of a
         similar nature.

8.3      PARTNER shall ensure that performance of the Total System of the
         Regional Metro Junction and Optic Access Network at the Regional
         Division III shall function properly until the expiry of the
         Maintenance Period through necessary repair or replacement as set forth
         in detail in Schedule 5.

ARTICLE 9
SURVEY, DESIGN, AND PLANNING

9.1      The Planning and design activities for the Project must be able to
         fully accommodate the DRM [Design Review Meeting] and monthly meeting
         mechanism as described in Article 15 of this Agreement.

9.2      The planning and design work shall include Survey of the
         Location/Site(s) where PARTNER and TELKOM jointly determine the best
         location/site for installation of the equipment, with Location
         requirements determined by TELKOM.

ARTICLE 10
CIVIL WORK OUTSIDE PLAN

10.1     PARTNER shall apply the regular cost for the excavation work and its
         reinstatement (construction unit: BC-TR). Payment by TELKOM to PARTNER
         relating to the work will be determined only based upon the

                                       8
<PAGE>

         actual length of fiber optic cable. The actual condition of land (soft
         land, macadam, tar) will not determine the cost for the excavation work
         and its reinstatement. TELKOM shall only make payment based upon the
         actual length of fiber optic cable as agreed in the Design Review
         Meeting (DRM).

10.2     Regular cost for the excavation work and its reinstatement shall relate
         to Level-5 of the List of OSP Civil Work Prices as set forth in the
         Schedule 1.

10.3     PARTNER shall install the fiber optic cable on the depth level of 130
         cm.

ARTICLE 11
INSTALLATION PROCEDURES AND STANDARDS

11.1     PARTNER shall provide all services to ensure the proper installation of
         all equipments, provide optimal operating conditions and maximize its
         long-term viability. PARTNER shall provide all tools and equipments
         necessary to install and commission its equipment.

11.2     PARTNER shall provide equipment installation services, which consist
         the following activities:

         a.       provision of materials, labor, equipment, tools and machinery
                  for installation;

         b.       materials delivery and storage;

         c.       transportation of goods;

         d.       installation of the equipment;

         e.       cleaning-up sites; and

         f.       site preparation plan and drawings.

11.3     Provision of materials, labor, equipment, tools and machinery by
         PARTNER for installation shall include the following activities:

         a.       provision of all materials, labor, tools, transportation,
                  telecommunication facilities (telephone, facsimile, etc.) and
                  everything necessary for completion of the work pursuant to
                  this Agreement;

         b.       Mobilization of adequate supervisory force and staff,
                  consisting of experienced engineer, technicians and workmen to
                  complete the work satisfactory and in workmanlike manner
                  within the period specified in this Agreement;

         c.       provision of all equipments, tools, measuring equipment,
                  machinery and electricity which is used for installation
                  purpose only; and

11.4     Installation of the equipment by PARTNER shall consist of the following
         activities:

                                       9
<PAGE>

         a.       provision of lines and integration of sub-component into the
                  system unit, namely Transmission Equipment and Outside Plan
                  (OSP);

         b.       checking system unit and shall ensure that each system unit
                  may function as required.

11.5     Cleaning-up at each Location/Site shall be conducted during
         installation period and shall include the following activities:

         a.       PARTNER shall keep the work and storage areas clean and tidy
                  and shall everyday remove all combustible rubbish from inside
                  and near the buildings, structures and plant;

         b.       upon completion of each of installation, PARTNER shall remove
                  from the Location/Site as early as possible all tolls,
                  appliances, packing cases and plant not constituting an
                  integral part of this Agreement;

         c.       PARTNER shall either remove or level as required by TELKOM's
                  Project Manager, all excess earth or spoil resulting from any
                  excavation;

         d.       PARTNER shall make good to the satisfaction of TELKOM's
                  Project Manager at his own expenses, all damages to buildings,
                  plants, finishes, etc., caused by contractor, his
                  subcontractor(s) and/or their employees.

ARTICLE 12
LOCAL SUPPORTING INFRASTRUCTURE

PARTNER shall provide TELKOM with access to its local technical staffs to ensure
the effectiveness of deployment, operation and problem solving in due time.
PARTNER shall ensure that the local support is available in due time,
cost-effective, and has high-quality to meet the services level in accordance
with the requirements set by TELKOM.

ARTICLE 13
ACCEPTANCE TEST

13.1     Acceptance Test. List of items tested and procedures for testing must
         be completed and approved by the Parties before the first Acceptance
         Test is conducted. The Acceptance Test shall be performed after
         commissioning of the Sub-Ring System or the Sub Sub-Ring System
         conducted by PARTNER and ready for the Acceptance Test. PARTNER shall
         perform the Acceptance Test of the whole Work under this Agreement, at
         installation Locations based on the Acceptance Test schedule to be
         proposed by PARTNER to TELKOM. The Acceptance Test shall be performed
         in the presence of authorized representatives of the Parties.

                                       10
<PAGE>

13.2     Prior Notice on Acceptance Test. PARTNER shall provide a notice to
         TELKOM within 14 (fourteen) days before the Acceptance Test date.
         Within seven (7) days upon its receipt, TELKOM shall notify PARTNER of
         its approval on the Acceptance Test schedule or TELKOM may propose
         another Acceptance Test schedule no later than seven (7) days after the
         date proposed by PARTNER. In case TELKOM does not give any response of
         PARTNER's notice within seven (7) days, TELKOM shall be considered to
         have approved such Acceptance Test schedule.

13.3     Partial Acceptance Test. TELKOM has the option to request PARTNER to
         conduct the Partial Acceptance Test of the Sub-Ring System or certain
         Sub Sub-Ring System or that that will be determined later by TELKOM in
         any Ring System being constructed.

         In case that the Partial Acceptance Test results in the proper function
         and operation of the Sub-Ring System or Sub Sub-Ring System both from
         technical aspect in accordance with the technical specification set
         forth in this Agreement and commercial aspect, TELKOM shall issue a
         Partial BAST covering only the completed Sub-Ring System or Sub
         Sub-Ring System. The Partial BAST shall be treated as the BAST - I of
         the Work accepted.

         Maintenance Period for the Work accepted pursuant to this Article shall
         commence after the issuance of the Partial BAST and shall expire after
         twelve (12) months, regardless of whether or not the BAST - I will be
         issued in the future for the Sub-Ring System or the related Sub
         Sub-Ring System.

13.4     Acceptance Test Performance. After the whole Sub-Ring System or Sub
         Sub-Ring System is ready for the Acceptance Test, the Acceptance Test
         shall be conducted to check the comparability in the completed Sub-Ring
         System or Sub Sub-Ring System and the installed Equipment, with the
         Technical Specification agreed by PARTNER and TELKOM. PARTNER shall
         thereafter provide TELKOM with the Acceptance Test Report.

13.5     Obligation for default remedy. If there is any inconsistency with the
         Technical Specification (hereinafter "Default") during the Acceptance
         Test period, TELKOM and PARTNER shall record such Default in writing
         and PARTNER shall promptly start remedying such Default.

13.6     Major Default. If the Acceptance Test result shows that the Equipment
         may not be operated, or cause the damage or loss of data or software,
         or cause the corruption of data (hereinafter "Major Default"), PARTNER
         shall inform TELKOM in writing either to (a) cease the Acceptance Test
         or (b) extend the Acceptance Test period.

         In case of (a), after the Default is remedied, PARTNER shall inform
         TELKOM seven (7) days before conducting the retest.

13.7     Minor Default. If the Acceptance Test result shows that the Equipment
         will cause certain failures other than the Major Default, which do not
         affect the

                                       11
<PAGE>

         substantial operation of the Sub-Ring System or Sub Sub-Ring System,
         PARTNER shall remedy such Minor Default within three (3) months after
         the issuance of BAST - I.

13.8     Stability Test. Following the completion of the Acceptance Test,
         PARTNER shall perform a stability test for 14 (fourteen) days for the
         purposes of examining the performance of the Sub-Ring System or Sub
         Sub-Ring System in whole and of ensuring that the Work relating to such
         Sub-Ring System or Sub Sub-Ring System has been technically performed
         in accordance with the Technical Specification under this Agreement.
         During such examination, the Parties are not allowed to make any
         adjustment in case of any irregularity arising in certain part of the
         Sub-Ring System or Sub Sub-Ring System.

13.9     Examination of Acceptance Report and Stability Test Report. Following
         the completion of tests as regulated in this Article and PARTNER has
         submitted reports of the Sub-Ring System and Sub Sub-Ring System, and
         other requirements under this Agreement have been met, TELKOM shall
         examine all reports of PARTNER. In case that any part of the function
         does not conform to the Technical Specification under this Agreement or
         is not complete, TELKOM shall notify PARTNER in writing within seven
         (7) days since PARTNER submits such reports.

13.10    Remedy Costs. Any cost incurred in relation to the remedy as set forth
         in this Article shall be the full responsibility of PARTNER.

13.11    BAST - I for the Sub-Ring System or Sub Sub-Ring System shall be issued
         upon the fulfillment of the following activities:

         a.       installation has been performed;

         b.       each Sub-Ring System or Sub Sub-Ring System has been tested
                  and function properly in accordance with the Technical
                  Specification without any pending items which obstruct the
                  functional operation;

         c.       each Sub-Ring System or Sub Sub-Ring System may be operated
                  commercially;

         d.       PARTNER has submitted the As-built drawing;

         e.       PARTNER has submitted a certificate from the public work
                  authority stating that PARTNER has completed the reinstatement
                  work in accordance with public work specifications.

         BAST - I for the NMS System shall be issued after the Integration and
         the Transmission Network Management System has been performed, tested
         and function properly without any Major Default and PARTNER has
         submitted the As-built drawing.

13.12    Issuance of BAST - I. The Sub-Ring System or Sub Sub-Ring System shall
         be issued if PARTNER has demonstrated to TELKOM that all requirements
         under the Technical Specification set forth in Schedule 5 have been met
         under the conditions as follows:

                                       12
<PAGE>

         a.       Within seven (7) days after the stability test result, TELKOM
                  shall inform PARTNER of whether or not the Sub-System is
                  accepted;

         b.       In case that such reports show that the Sub-Ring System or Sub
                  Sub-Ring System has been tested and function properly in
                  accordance with the Technical Specification without any
                  pending items detrimental to the functional operation, TELKOM
                  cq. the Project Manager shall issue the First Acceptance
                  Certificate (BAST - I) for the related Sub-Ring System or Sub
                  Sub-Ring System within seven (7) days after the submission of
                  the Acceptance Test Report and Stability Test Report.

                  If TELKOM for any reason does not notify PARTNER in writing of
                  the non-acceptance of the Sub-System, or not issue BAST - I
                  within seven (7) days or TELKOM operates the Sub-Ring System
                  or Sub Sub-Ring System commercially, then such Sub-Ring System
                  or Sub Sub-Ring System shall be considered to have been
                  accepted and BAST - I must be issued.

         c.       The issuance of BAST - I by TELKOM shall not be withheld
                  because of any Minor Default, provided that (i) such default
                  will not be detrimental to the normal operation and
                  maintenance of the Sub-Ring System or Sub Sub-Ring System
                  pursuant to the Technical Specification as set forth in
                  Schedule 5; (ii) such default will be recorded as an
                  attachment to BAST - I so that PARTNER may perform the remedy
                  pursuant to Article 13.7.

13.13    The Second Acceptance Test (BAST - II) shall be issued by TELKOM cq.
         the Project Manager within twelve (12) months after the date of BAST -
         I, provided that PARTNER shall have met the following conditions:

         a.       all defaults have been remedied and reported;

         b.       all maintenance obligations have been met.

ARTICLE 14
PROCEDURES FOR DELIVERY

14.1     Any physical delivery of Deliverables listed in the Purchase Order
         shall be accompanied with records of delivery, covering:

         a.       Name and registered office of PARTNER;

         b.       Number of Purchase Order;

         c.       Date of delivery and transfer;

         d.       Volume and type of deliverables included; and

         e.       Certificate of Origin.

14.2     Delivery of equipment to Location/Site shall be made with reference to
         the Sub-Ring System or Sub Sub-Ring System completely and not
         partially, unless jointly agreed otherwise by the Parties.

                                       13
<PAGE>

14.3     PARTNER shall be responsible for the delivery of equipments, components
         and software from the origin country to the point of arrival in
         Indonesia and from the point of arrival to the Location/Site as stated
         in the relevant Purchase Order in accordance with Schedule 3
         (Implementation Schedule and Deployment Plan). PARTNER shall be
         responsible for any land transportation delivery costs to the intended
         Location/Site.

14.4     PARTNER covenants and warrants that all delivered equipments and
         components are from types that have been approved by the authority in
         Indonesia and have passed quality warranty by TELKOM in accordance with
         Article 8 and Schedule 11 (Procedures For Acceptance Test) hereto.

14.5     PARTNER shall be responsible for the supply of, and costs for, the
         facilities, equipment and services that may be required by PARTNER and
         its staff.

14.6     The provisions set forth in this Article 4 shall be effective if
         payment for the project performed under this Agreement is made by using
         internal fund of TELKOM.

ARTICLE 15
REPORT AND MEETING

15.1     Written Report. PARTNER shall provide a written report (progress
         report) on each phase of the Work pursuant to the Implementation
         Schedule as set forth in Schedule 3, at least once a month, to be made
         in five (5) copies, four (4) of which shall be sent to TELKOM cq. the
         Project Manager and the rest shall be sent to the Chairman of Regional
         Division III.

15.2     Periodic Meeting. For the smoothness of the Work, TELKOM and PARTNER
         agree to hold periodic meetings at least once a month or such other
         period as agreed by the Parties from time to time.

ARTICLE 16
PROJECT MANAGEMENT

16.1     PARTNER shall propose the Project Management Plan ("PMP") in the form
         as set forth in Schedule 12. TELKOM and PARTNER shall discuss and
         mutually agree on the details of the PMP.

16.2     Prior to the Project activity, the Parties shall have already agreed on
         the PMP, at least on the following:

         a.       Task and responsibility;

         b.       Organization and Project Personnel;

         c.       Submission of Report concerning progress and occurring
                  problem.

                                       14
<PAGE>

16.3     PARTNER shall appoint Project personnel as described in the PMP,
         including Project Manager responsible on the contact with TELKOM
         pertaining to the solving of any problem occurs during the performance
         of the Project.

16.4     Identity and qualification of all Project personnel as proposed by
         PARTNER to work at the Project, including the Project Manager as
         described in the PMP shall be notified in writing by PARTNER to TELKOM
         prior to the appointment. Project Manager shall only be appointed upon
         TELKOM's prior approval. For any other Project personnel, TELKOM shall
         notify PARTNER on its objections within 7 (seven) Calendar Days
         following the notification and the Project personnel to whom TELKOM has
         objection on shall not be appointed. The substitute shall possess same
         qualifications and shall be fit for the Project.

16.5     At TELKOM's sole discretion, TELKOM may appoint its Project Manager
         with whom PARTNER's Project personnel shall at any time, maintain close
         cooperation and communications. TELKOM may also appoint local
         supervisor with whom MITRA'S local Project personnel shall at any time,
         maintain close cooperation and communications.

         Project Manager appointed by TELKOM for the performance of WORK under
         this AGREEMENT is the Head of TELKOM CONSTRUCTION CENTRE, while the
         Project owner appointed under this AGREEMENT is the REGIONAL DIVISION
         III.

16.6     TELKOM may object to and, after consulting it with PARTNER, request
         PARTNER to immediately replace anyone employed by PARTNER or by any
         sub-contractor, which under TELKOM's reasonable opinion, undertake
         wrongdoings, proven to be unqualified in accordance with the terms of
         the Scope of Work or does not have the capability or is in negligence
         in performing his duties, and such person shall not be re-employed in
         any Project location unless with TELKOM's prior written approval.

16.7     PARTNER shall deliver to TELKOM a required progress report as described
         in the Scope of Work. With relation to the period covered in the
         progress report, if PARTNER fails to inform TELKOM on the occurrence of
         any problem, the TELKOM shall be entitled to consider such problem as
         not having occurred during the said period. However, the submission of
         the said progress report from PARTNER to TELKOM shall not modify
         PARTNER's obligation in accordance with the provisions of this
         Agreement.

16.8     PARTNER shall provide complete project management support to the
         Project, including maintaining the sub-contractor and other suppliers,
         and maintaining the acquired site as needed, licensing and passing
         rights.

16.9     PARTNER shall deliver the renewed Implementation Schedule to TELKOM.
         The renewed Implementation Schedule shall contain significant
         milestones including:

                                       15
<PAGE>

         a.       The initiation of performance at each Location;

         b.       The initiation of detail survey for each Location;

         c.       The completion of installation, construction design, related
                  drawings with the Project;

         d.       Ready date for self-test by PARTNER, and Acceptance Test for
                  each Location/site;

16.10    The handover of equipments, components, software and services by
         PARTNER shall fulfill the provisions of this AGREEMENT, including the
         timetable and milestones as set forth in Schedule 3 (Implementation
         Schedule and Deployment Plan).

16.11    Any amendment on the Implementation Schedule shall be made upon mutual
         agreement of the Parties and shall only be valid if conducted as the
         Amendment signed by authorized representative of each Party.

16.12    Location Survey

         1.       Following the enforcement of the AGREEMENT, PARTNER shall
                  conduct a detailed and engineered survey on the LOCATION by
                  considering detailed design standard prepared by PARTNER and
                  approved by TELKOM. PARTNER shall appraise the
                  installation/construction design in simultaneously with the
                  related bill of quantities.

         2.       Upon the completion of LOCATION survey, PARTNER shall report
                  the result of such survey to TELKOM.

         3.       LOCATION survey has target to conduct the following
                  activities:

                  (i)      Determining the installation route of fiber optic,
                           new buildings along with the supporting facilities,
                           including estimating the existing duct system that
                           may be re-utilized.

                  (ii)     Underlining supporting facilities that may be
                           re-utilized, including power supply, building.

                  (iii)    Determining the lay out/ placement, junction
                           equipment and optical access in STO building or any
                           other TELKOM building.

                  (iv)     Determining the precise quality and length of the
                           cable-bridge along with the duct attaching to the
                           bridges.

         4.       PARTNER shall be liable for the administrative and
                  organizational activities required to conduct the LOCATION
                  survey. PARTNER shall be liable for all expenses in conducting
                  the LOCATION survey, including personnel, transportation,
                  accommodation, communications, and financing the expense of
                  other party who may be related in conducting each work or
                  analysis as described in Article 16.12. TELKOM shall only be
                  liable for the accommodation and transportation expenses of
                  TELKOM's employees who are involved in the LOCATION survey.

                                       16
<PAGE>

16.13    Design Review Meeting /DRM

         1.       After the undertaking of detailed survey, TELKOM and PARTNER
                  shall conduct Design Review Meeting.

         2.       The first DRM shall be conducted within 10 (ten) working days
                  following the detailed survey. Any subsequent DRM shall only
                  be commenced in the occurrence of design change.

         3.       In DRM, TELKOM and PARTNER shall simultaneously undertake
                  and/or agree on at least the following activities:

                  (i)      describe and complete the list of infrastructure
                           which may be re-utilized based on the Location
                           survey;

                  (ii)     complete the details of the route;

                  (iii)    complete depth of level of the digging along the
                           route;

                  (iv)     complete the details of the bills of quantity;

                  (v)      agree on the adjustment, if any, upon the Project
                           Management Plan and the Implementation Schedule.

         4.       PARTNER shall be liable for all the administrative and
                  organizational activities required to arrange all DRM. PARTNER
                  shall be liable for all the calling expenses of the DRM and
                  shall fund the analysis described in Article 16.13. TELKOM
                  shall only be liable to finance the accommodation and
                  transportation expenses of TELKOM's employee attending DRM.

         5.       The Parties shall bear a report in each DRM, in which the
                  agreed substances noted as the agreement of the Parties,
                  evidenced by the signed Resolution of Meeting by authorized
                  representative of each Party.

         6.       In convening each DRM, the Parties shall always refer to the
                  maximum of the Contract Value as given under Article 19 of
                  this AGREEMENT.

         In the event the Parties do not reach any agreement in DRM, such
         problem shall be delivered to the senior management of each party to
         conclude an agreement.

16.14    Representatives on Location Survey and DRM

         TELKOM and Partner shall notify each Party from time to time with
         relation to the appointment (and any amendment of such appointment) of
         an authorized representative having the authority to conduct or enter
         into agreement in each DRM and/or monthly meeting for the interest of
         each Party.

                                       17
<PAGE>

ARTICLE 17
MAINTENANCE PERIOD

17.1     MAINTENANCE PERIOD is a period of 12 (twelve) months commencing as from
         the date of the related BAST - I or the date on which EQUIPMENT is
         commercially utilized by TELKOM, whichever comes first.

17.2     PARTNER represents that EQUIPMENT shall function well and stable in
         accordance with the TECHNICAL SPECIFICATION during the MAINTENANCE
         PERIOD. In the occurrence of any technical damage, default or
         malfunction in the normal operation during the MAINTENANCE PERIOD,
         PARTNER shall fix and/or replace such damage, default or malfunction
         upon its own expense. PARTNER represents that during the MAINTENANCE
         PERIOD set forth in Article 17.1, hardware shall be free of any factory
         damage and shall function as described in the TECHNICAL SPECIFICATION.

17.3     Defect during MAINTENANCE PERIOD. If there is any major default or
         disturbance against the SUB-SYSTEM within 12 (twelve) month period,
         unless in Force Majeure and/or any event in which PARTNER shall not be
         liable under this AGREEMENT, which in cumulative exceeds or is the same
         as 24 (twenty four) hour of unavailability of SUB-RING SYSTEM or SUB
         SUB-RING SYSTEM, then the issuance of the Second Acceptance Certificate
         (BAST-II) shall be postponed and the MAINTENANCE PERIOD on the SUB-RING
         SYSTEM or SUB SUB-RING SYSTEM shall be extended up to the number of
         days of the occurrence of such disturbance. On its own expense, PARTNER
         shall put its best effort to give alternative solution which is
         commercially proper.

17.4     PARTNER shall not be obligated and/or liable to remedy any default
         and/or inconformity or any subsequent default and/or inconformity in
         the event such is caused by TELKOM or Third Party.

17.5     In the event there is no damage and/or there is no claim from TELKOM
         during MAINTENANCE PERIOD, then PARTNER shall not be required to
         conduct the second acceptance test upon the WORK which was delivered by
         PARTNER to TELKOM under BAST-I and TELKOM shall immediately issue
         BAST-II to PARTNER.

ARTICLE 18
SPARE PARTS

18.1     During MAINTENANCE PERIOD, all parts that are needed to be replaced as
         spare, shall be provided by PARTNER without any fee unless PARTNER is
         released from this obligation pursuant to Article 39.3 of this
         AGREEMENT.

18.2     PARTNER shall provide the information on prices and suppliers (local
         and foreign) with relation to the spare parts, sub-assemblies, etc, and
         recommend

                                       18
<PAGE>

         the amount to be purchased and stocked for the successful of the SYSTEM
         maintenance.

18.3     PARTNER shall provide a list of spare parts, description and the number
         of EQUIPMENT and module as needed.

18.4     PARTNER shall agree to supply spare parts to TELKOM and TELKOM shall be
         entitled to purchase spare parts from PARTNER for TELKOM's maintenance
         purpose with a mutually agreed price.

18.5     PARTNER shall agree to provide a list of spare parts and usable
         materials, to the extend of its knowledge, to be purchased and stocked
         by and become TELKOM's for the maintenance and utilization of SYSTEM
         for the period of 7 (seven) years following BAST -II.

18.6     PARTNER shall provide spare parts and usable materials to be purchased
         and stocked by TELKOM for a minimum period of 7 (seven) years after the
         final production of each EQUIPMENT, unless the equal replacement of
         such spare part and usable material is available. Further, if the
         supply of spare parts related to the SYSTEM is stopped, PARTNER shall
         notify TELKOM at least 1 (one) year before such replacement is
         conducted.

CHAPTER 3
COMMERCIAL TERMS AND CONDITIONS

ARTICLE 19
CONTRACT VALUE

19.1     Contract Value including incoming Tax, other taxes, duties and expenses
         in accordance with the prevailing rules and regulations yet excluding
         VAT 10%, to implement the Project under this AGREEMENT shall be in the
         amount of USD6,479,991.54 and Rp112,426,656,406.18 with the details as
         set forth in Schedule 1 (Recapitulation and Description of Prices &
         Bill of Quantity) of this AGREEMENT.

19.2     Implementation of the Contract Value mentioned in the above Article
         19.1 shall be further disclosed in each Purchase Order issued by TELKOM
         in accordance with the provision of Article 25 of this AGREEMENT.

19.3     However, TELKOM and PARTNER agree that in the event the Scope of Work
         is amended based on the result of the Design Review Meeting, the final
         survey and the "actual Bill of Quantity" for each SUB-RING SYSTEM or
         SUB SUB-RING SYSTEM, then the final price of the Contract Value shall
         be recalculated and adjusted as needed.

19.4     No additional expense. Contract Value as described in the expenses
         description as mentioned in Schedule 1 of this AGREEMENT shall have
         covered all the parts required in implementing the WORK under this

                                       19
<PAGE>

         AGREEMENT, unless there is an addition or reduction of WORK as
         requested in writing by TELKOM as provided under Article 43 (Variation
         of Work) and Article 3.3 (Adjustment of Scope of Work) with relation to
         the addition or reduction of WORK under this AGREEMENT.

19.5     Unit prices described in Schedule 1 are fixed and shall not change
         unless agreed upon under this AGREEMENT. Unit price of equipment shall
         be considered including the payment by PARTNER for all the
         transportation, insurance, custom duty and import duty, import related
         tax, licensing at receiving port, land transportation, storehouse and
         hand over to the Location/Site where the equipment is assembled. Unit
         price for the service related to the equipment include the survey,
         planning, design, licensing, passing right, assembling, integration,
         project management, insurance and assignment of right, commissioning
         and expenses on acceptance test, services related to acquired land, and
         all related material and expenses in completing the Project on a
         turnkey basis as referred to in Article 3.5. Import duty or custom duty
         shall be included in the unit prices as mentioned in Schedule 1 and
         shall remain fixed.

ARTICLE 20
INSURANCE AND SECURITY

20.1     PARTNER shall maintain and close the insurance on its own expense for
         the shipping, during the transportation, installation up to BAST-I for
         all the risk under this AGREEMENT, with TELKOM as the beneficiary.

20.2     The insurance company appointed b PARTNER for local transportation and
         the work of land installation shall be an Indonesian insurance company,
         being PT Jasa Indonesia (PT JASINDO) through PT Sarana Janesia Utama
         (PT SJU).

20.3     In delivering the first invoice, PARTNER or its members shall enclose
         copy of the original insurance policy or cover note. Upon request,
         original of the insurance policy or cover note shall be disclosed to
         TELKOM to be examined.

20.4     PARTNER shall maintain Jaminan Sosial Tenaga Kerja (JAMSOSTEK) for its
         employees on its own expense.

ARTICLE 21
TAX AND IMPORTING

21.1     Tax and Importing. All taxes (excluding Value Added Tax), stamp duty
         and other duties under the Government regulations shall be under
         PARTNER's liability. Tax deduction shall be conducted by PARTNER based
         on the prevailing regulations.

                                       20
<PAGE>

21.2     Importer. All EQUIPMENT (both hardware and software) imported under
         this AGREEMENT shall be conducted under DDP (Delivery Duty Paid) as
         regulated in Incoterm 2000. Therefore, it shall be agreed by the
         Parties in this AGREEMENT: (i) The Party acting as the importer shall
         be PARTNER; and (ii) PARTNER shall use its Import License or Master
         List (Agent) in managing the release of EQUIPMENT from the authority of
         Duty and Exempt.

21.3     Additional equipment. In the event PARTNER require additional
         equipment, tool or device in implementing WORK that shall only be
         obtained by importing it from aboard, then all the expense, tax,
         retribution and other fee upon them shall be borne by PARTNER.

21.4     PARTNER shall be liable on its own expense, to punctually obtain all
         the permit, licenses and approval over the export from originating
         country and each transit locations, including the payment for every and
         all retribution to handle the transportation and other expenses related
         to the permit, license and approval.

21.5     Deviations in importing procedure. PARTNER shall be fully liable upon
         the occurrence of deviations upon the transporting of EQUIPMENT from
         originating country, transporting procedure or supporting import
         documents, as regulated under the Presidential Instruction No. 3 of
         1991 dated 25 July 1991 or its replacement regulation, if any.

ARTICLE 22
ASSIGNMENT OF TITLE OF OWNERSHIP AND RISK

22.1     Occurrence of Assignment. Assignment of title of ownership and risk
         from PARTNER to TELKOM shall occur for each Purchase Order when (i) the
         First Acceptance Certificate (BAST-I) is issued by TELKOM, or (ii)
         SUB-RING SYSTEM or SUB SUB-RING SYSTEM has been commercially operated
         by TELKOM, whichever comes first.

22.2     Continuing liability of PARTNER. The assignment of title of ownership
         as mentioned in Article 22.1 shall not affect, release or discharge the
         risk and liability of PARTNER for the warranty of EQUIPMENT and any
         other material or for Minor Default on EQUIPMENT as referred to in
         Articles 13.7 and 13.10 of this AGREEMENT, up to the issuance of the
         Second Acceptance Certificate (BAST-II).

ARTICLE 23
RIGHTS AND OBLIGATIONS OF PARTNER

Other than the rights and obligations given under other Articles of this
AGREEMENT, PARTNER shall have the rights and obligations as follows:

23.1     Obligations of PARTNER:

                                       21
<PAGE>

         a.       Ensure that the performance of the Regional Metro Junction
                  SYSTEM and Optical Access Network in Regional Division III
                  operate in good manner until the termination of MAINTENANCE
                  PERIOD through repair or replacement as needed, as further
                  regulated in Schedule 5.

         b.       Ensure the service/feature quality at least up to the minimum
                  requirements until the termination of MAINTENANCE PERIOD
                  through repair or replacement as needed, as provided under
                  this AGREEMENT.

         c.       Completion of WORK under Article 3 of this AGREEMENT in such
                  manner that the Regional Metro Junction Project and Optical
                  Access Network in Regional Division III function in accordance
                  with the Technical Specification and may be commercially
                  operated pursuant to Article 4.1 of this AGREEMENT.

         d.       Conduct the up grade software of Regional Metro Junction and
                  Optical Access Network in Regional Division III at the
                  required time which was caused by, among others, the
                  occurrence of addition or expansion of new equipment during
                  Maintenance Period without additional expense from TELKOM.

23.2     Rights of PARTNER:

         Receive punctual payment from TELKOM upon the implementation of this
         AGREEMENT.

ARTICLE 24
RIGHTS AND OBLIGATIONS OF TELKOM

Other than the rights and obligations given under other Articles of this
AGREEMENT, TELKOM shall have the rights and obligations as follows:

24.1     Obligations of TELKOM:

         a.       Commence payment to PARTNER for the punctual implementation of
                  WORK under this AGREEMENT.

         b.       Issue recommendations as needed by PARTNER to conduct license
                  arrangement as regulated in Article 5 of this AGREEMENT.

         c.       Provide LOCATIONS and all the required infrastructures
                  (including but not limited to electricity, water, air
                  conditioning, security, grounding, fire detector equipment,
                  fire distinguisher equipment, access gateways) at the
                  LOCATIONS for the installation of EQUIPMENT pursuant to the
                  implementation schedule and the result of Design Review
                  Meeting.

                                       22
<PAGE>

24.2     Rights of TELKOM:

         a.       Accept the performance of the Regional Metro Junction System
                  and Optical Access Network in Regional Division III through
                  repair or replacement as needed, until the termination of
                  MAINTENANCE PERIOD, as described in detail in Schedule 5.

         b.       Accept the quality of service/feature up to at least the
                  minimum requirements through repair or replacement as needed,
                  until the termination of the MAINTENANCE PERIOD, as provided
                  under this AGREEMENT.

ARTICLE 25
PURCHASE ORDER AND PROCEDURE

25.1     PARTNER shall deliver all Deliverables to TELKOM as the response
         against the Purchase Order issued by TELKOM from time to time, which in
         general takes place after the implementation of DRM.

25.2     TELKOM through TELKOM's Project Manager (most preferable) or any
         authorized representative which has been approved the Parties (for
         certain geographical area as notified in writing by TELKOM from time to
         time) shall issue Purchase Order.

25.3     Purchase Order shall only be valid if: (a) made in writing in the form
         as set forth in Schedule 7 (Purchase Order), and (b) signed by TELKOM's
         Project Manager or the appointed representative and PARTNER.

         Purchase Order shall enclose the required schedules and shall in proper
         manner clearly describes:

         25.3.1   SUB-RING SYSTEM or SUB SUB-RING SYSTEM to be established;

         25.3.2   Purchase Order Value;

         25.3.3   Location/Project Area;

         25.3.4   Detailed Network Design;

         25.3.5   Detailed BoQ; and

         25.3.6   Complete Implementation Schedule and description for each
                  Location.

25.4     Within 5 (five) Working Days since the receipt of Purchase Order,
         PARTNER through its authorized representative shall, among others:

                                       23
<PAGE>

         25.4.1   approve Purchase Order by co-signing Purchase Order or its
                  copy at the provided space and return it to TELKOM through
                  facsimile, followed by the letter or direct mail or by courier
                  service. The co-signing of Purchase Order by authorized
                  representatives of PARTNER shall be deemed as the approval of
                  Purchase Order by PARTNER under no condition and every terms
                  and conditions come with such approval shall be void and not
                  be valid; or

         25.4.2   notify TELKOM through facsimile, which is followed by a letter
                  or direct mail or by courier service that Purchase Order is
                  not approved.

                  PARTNER shall be entitled to refuse to approve Purchase Order
                  if: (a) Purchase Order is not complete or does not have the
                  required document; or (b) Purchase Order does not cover the
                  concerned written decision of DRM in accordance with Article
                  16.13.

25.5     TELKOM may issue one or more new Purchase Orders as deemed necessary in
         simultaneous with the concerned DRM.

ARTICLE 26
TERMINATION OF PURCHASE ORDER

26.1     A Purchase Order may be terminated by TELKOM in whole or in part and
         from time to time by TELKOM, as the result of:

         26.1.1   Force Majeure and/or

         26.1.2   the inability of PARTNER to complete work within 50 calendar
                  days as from the completion date provided under the Purchase
                  Order.

26.2     TELKOM shall deliver a writing notification to PARTNER, which is the
         "Notification on Purchase Order Termination", signed by TELKOM's
         authorized representative which shall disclose the reasons for the
         actions, the limit where the performance of work under the Purchase
         Order is terminated and the date (which shall not be less than five (5)
         Working Days since the date of Notification on Purchase Order
         Termination) where such termination shall become effective.

26.3     Unless directed otherwise by TELKOM in the said notification, upon the
         acceptance of such Notification on Purchase Order Termination, PARTNER
         shall:

         26.3.1   terminate the work given under the Purchase Order on the date
                  and as provided in the Notification on Purchase Order
                  Termination (unless properly required upon security or safety
                  consideration);

         26.3.2   be restricted from placing any following order or contract for
                  material, service or facility with its sub-contractors, unless
                  such is necessary to complete a part of the work in accordance
                  with the Purchase Order which is not terminated;

                                       24
<PAGE>

         26.3.3   use proper effort to terminate every order and contract
                  related to the performance of the work terminated under the
                  Notification of Purchase Order;

         26.3.4   subject to the payment from TELKOM under Article 27, transfer
                  to TELKOM (if made possible under orders and contracts), with
                  the mean, at the time and as provided under TELKOM's
                  direction, PARTNER's right, right of ownership and interest
                  pursuant to the terminated order and contract;

         26.3.5   use proper effort to decrease the loss occurring from the
                  termination of the Purchase Order and conclude all the
                  outstanding obligations and any claim arising from the
                  termination of such order and contract, with the approval and
                  ratification from TELKOM, as far as such approval and
                  ratification is required, the approval or ratification of
                  which shall;

         26.3.6   subject to the payment from TELKOM under Article 27 and as
                  properly requested by TELKOM, (i) transfer the right and
                  deliver to TELKOM by the mean, at the time and as provided (if
                  any) under TELKOM's direction, the fabricated or not
                  fabricated parts, the ongoing work, the completed work, stock,
                  and other materials resulted as a part from, or obtained in
                  relation with the performance of work that is terminated under
                  the Notification on Purchase Order Termination, and (ii)
                  deliver to TELKOM the plan, drawing, information and other
                  asset which has been completed or partly completed, which if
                  the Purchase Order were to be completed, would be delivered to
                  TELKOM;

         26.3.7   complete the performance of part of the Scope of Work that may
                  have not been terminated under the Notification on Purchase
                  Order Termination; and

         26.3.8   take necessary actions, or as may be determined by TELKOM, to
                  protect and maintain the assets related to the Purchase Order
                  that are under PARTNER's authority, upon which TELKOM has or
                  may have its right, provided that if PARTNER follows TELKOM's
                  lead, PARTNER shall not be liable to TELKOM upon the loss or
                  damage of such asset;

26.4     Upon the acceptance of Notification on Purchase Order Termination,
         PARTNER shall deliver to TELKOM a written termination claim. Such claim
         shall be delivered immediately, in any case within at the latest ninety
         (90) days since the Notification on Purchase Order Termination. Payment
         of the claimed amount pursuant to such termination claim, which is
         approved by TELKOM to be paid in accordance with the performance of
         PARTNER's obligation under Article 26.2 shall be paid to PARTNER
         pursuant to the issuance of special Purchase Order, and payment shall
         be conducted by TELKOM within twenty one (21) Working Days as from
         TELKOM's

                                       25
<PAGE>

         approval (the approval of which shall not be withheld or postponed
         without any proper reason) upon such claim. For avoidance of doubt, for
         the purpose of TELKOM's payment obligation under this Article 26, every
         Deliverable related to the Purchase Order for which the Notification on
         Purchase Order Termination has been delivered shall be examined to the
         extent of TELKOM's satisfaction, where this examination shall be
         considered as Acceptance Test.

26.5     In completing the claim of such termination in whole or in part, the
         payment from TELKOM to PARTNER shall be limited to as follows:

         26.5.1   the price for the accomplished work pursuant to Schedule 1;

         26.5.2   reasonable and proper pro rata amount with relation to the
                  partly accomplished work, if such is made possible under
                  Schedule 1;

         26.5.3   stock expense and the expense of goods that are reasonably
                  purchased and required with relation the part of Purchase
                  Order which has been terminated, yet have not been included in
                  the accomplished work in whole or in part;

         26.5.4   completion expense and claim payment arising from the
                  termination of work under contract and order, as determined
                  above, which are reasonably imposed upon the terminated part
                  of Purchase Order;

         26.5.5   accounting, legal and administration expenses which are
                  reasonably required to process the completion claim and
                  supporting data related to the part of terminated Purchase
                  Order and for the completion and accomplishment of contract
                  for such purpose, along with the storage, transport and other
                  reasonable expenses born with relation to the protection or
                  sale of asset allocated to the Purchase Order.

26.6     Notwithstanding the aforesaid, whole payment to PARTNER in accordance
         with this Article 26, along with other payments, shall not exceed the
         prevailing value for the work or for the terminated part. TELKOM shall
         not be responsible for any expense or other liability beyond the
         expense which has been claimed and validated in accordance with Article
         26.4. TELKOM shall not be liable to PARTNER in the case of such
         termination upon any profit loss or consequential damages.

26.7     Up to the outstanding amount indebted to PARTNER pursuant to this
         Article 26, then all the paid monies or due to be made payable to
         PARTNER shall be deducted with each obligation PARTNER may have to
         TELKOM and prices which has been approved for or sale result from every
         material, supply or other things obtained by PARTNER or sold in
         accordance with this Article and not otherwise regained by or credited
         to TELKOM. If such caused net obligations of PARTNER to TELKOM, then
         PARTNER shall pay such amount to TELKOM within thirty (30) days after
         requested in writing.

                                       26
<PAGE>

26.8     For the period of one (1) year following the final completion pursuant
         to Purchase Order, PARTNER shall maintain and provide TELKOM at any
         reasonable time at PARTNER's premise, all books, records and documents
         covering the expense and fee in accordance with the Purchase Order
         related to the accomplished work pursuant to this Article 26.

CHAPTER 4
FINANCIAL TERMS AND CONDITIONS

ARTICLE 27
TERMS AND CONDITIONS OF PAYMENT

27.1     The terms of payment of WORK under this Agreement will be made to
         PARTNER by TELKOM in full in amount of Purchase Order value after
         PARTNER completing the work based upon Sub Ring System or Sub Sub-Ring
         System related to the issuance of BAST-I.

27.2     The payment of Contract Value of each Purchase Order to PARTNER by
         TELKOM shall be made after the delivery of the following documents:

         1)       original introduction letter of PARTNER's Project Manager;

         2)       1 original and 2 copies of invoices;

         3)       additional and reduction Work Certificate based upon Sub Ring
                  System or Sub Sub-Ring System;

         4)       copy of Performance Bond;

         5)       original Maintenance Bond;

         6)       1 original and 2 copies of receipts;

         7)       original 10% VAT invoice;

         8)       original BAST-I;

         9)       copy of insurance policy;

         10)      original Certificate of Origin;

         11)      copy of Purchase Order and its amendment if any.

27.3     The payment of Training Service is made to PARTNER by TELKOM in full or
         in amount of 100% of Training Service Price after all training is
         completed by PARTNER to TELKOM's employees, which evidenced by the
         issuance of Training Completion Certificate. PARTNER's invoice shall be
         completed by the following documents:

         1)       original introduction letter of PARTNER's Project Manager;

         2)       1 (one) original and 2 (two) copies of invoices;

         3)       1 original and 2 copies of receipts;

         4)       original 10% VAT invoice;

         5)       original Training Completion Certificate;

         6)       copy of Purchase Order and its amendment if any.

27.4     Period of Payment

                                       27
<PAGE>

         Any payment shall be made within 21 (twenty one) calendar days after
         TELKOM receiving complete and correct documents. If TELKOM fails to
         make the payment within such stipulated period, TELKOM will be imposed
         with a penalty in amount of 1o/oo (one per mil) of the outstanding
         Invoice Amount for each day of delay at the maximum penalty of 5%.

27.5     Address for Invoice

         The invoice and related documents under this Agreement shall be
         delivered to the following address:

         Head of III Regional Division
         PT Telekomunikasi Indonesia, Tbk.
         Jalan Supratman No. 66A
         Bandung - 40122

27.6     The payment to PARTNER by TELKOM shall be made by transfer directly to
         the following address:

         Bank:    Mandiri, Asia Afrika Selatan Bandung Branch
         Address: Jl. Asia Afrika 118-120
                  Bandung

         For USD:
         Account No.: 130.0075.000.102
         For IDR:
         Account No.: 130.0074.000.095

         Both accounts are on behalf of PARTNER (written as contemplated in the
         account). Transfer fee shall be borne by PARTNER.

ARTICLE 28
PERFORMANCE BOND AND MAINTENANCE BOND

28.1     For any Purchase Order issued by TELKOM, PARTNER shall issue a
         Performance Bond in the form of Bank Guarantee or Surety Bond in
         accordance with TELKOM's prevailing provision in amount of 5% of the
         relevant Purchase Order value which has the validity period commencing
         from the issuance date of Purchase Order until BAST-I issued by TELKOM
         under this Agreement, or commercially deployment of any Deliverables
         under this the Purchase Order concerned.

28.2     PARTNER obliges to issue Maintenance Bond in the form of Bank Guarantee
         or Surety Bond in accordance with TELKOM's prevailing provision in
         amount of 5% of Purchase Order value after the issuance of BAST-I.

28.3     Performance Bond is effective as from the Purchase Order Date until the
         date of BAST-I, and Maintenance Bond is effective as from the date of
         BAST-I until the date of BAST-II.

                                       28
<PAGE>

28.4     The original Performance Bond shall be delivered to TELKOM by PARTNER
         within 14 (fourteen) calendar days as from the signing date of this
         Purchase Order, and the original Maintenance Bond is delivered when
         BAST-I period ends. Both Bank Guarantees are delivered to:

         PT Telekomunikasi Indonesia, Tbk.
         Attention: Head of III Regional Division
         Jalan Supratman No. 66A
         Bandung - 40122

28.5     In the event the Performance Bond and Maintenance Bond expire previous
         to the WORK or obligation completed, PARTNER shall extend the validity
         period of such guarantees not later than 14 (fourteen) calendar days
         prior to their expiration and deliver them to:

         PT Telekomunikasi Indonesia, Tbk.
         Attention: Head of III Regional Division
         Jalan Supratman No. 66A
         Bandung 40122

28.6     Performance Bond as stipulated in Article 28.1 shall be returned to
         PARTNER when BAST-I is delivered. Maintenance Bond as stipulated in
         Article 28.2 shall be returned to PARTNER on the delivery of BAST-II.

28.7     In the event PARTNER fails to complete the WORK or its parts based upon
         terms and conditions of this Agreement, due to serious negligence
         and/or intentional default, then PARTNER and TELKOM shall discuss such
         circumstances. If no consensus is reached, TELKOM is entitled to
         exercise such Performance Bond/Maintenance Bond and it belongs to
         TELKOM.

CHAPTER 5
TERMS AND CONDITIONS OF PROJECT ORGANIZATION

ARTICLE 29
ASSIGNMENT AND SUB-CONTRACT

29.1     PARTNER without prior written consent of TELKOM, may not assign this
         Agreement, or transfer or encumber a number of the outstanding or
         become outstanding moneys under this Agreement.

29.2     TELKOM is entitled to assign this Agreement to one of subsidiary of or
         related company to TELKOM with prior consent of PARTNER in which such
         consent may not be unreasonably withheld.

29.3     List of each proposed subcontractor and part of proposed Scope of Work
         to be performed by subcontractor will be conveyed on DRM. In the event
         of the existence of a proposal to change and/or add subcontractor,
         PARTNER shall immediately notify TELKOM in writing prior the proposed
         subcontractor is

                                       29
<PAGE>

         appointed. TELKOM shall notify TELKOM within seven (7) Working Days if
         it has substantive objection to the appointment of one of proposed
         subcontractor and/or the relevant work to be performed by them and
         PARTNER shall consider such objection in order to fulfill the approval
         of TELKOM.

29.4     The use of subcontractor by any manner does not relieve PARTNER from
         its liability to deliver the Deliverables to TELKOM (in particular to
         ensure that the Deliverables comply with all requirements under this
         Agreement) or to perform necessary tasks such as project management.

29.5     PARTNER shall ensure that the addition or substitution of any
         subcontractor does not affect the agreed Contract Value or the
         implementation of the Scope of Work.

ARTICLE 30
LOGISTICS

30.1     PARTNER shall provide all logistical requirements from the point of
         origin of any equipment, components or other Project goods to the
         applicable Project Location/Site, inclusive of all charges, such as
         transport and transit, demurrage, storage, insurance, levies, taxes,
         etc.

30.2     PARTNER shall determine all arrangements for shipping/transportation,
         forwarding and servicing the equipment, component or other Project
         goods from their point of origin to the Project Location/Site where
         they are finally deployed.

30.3     PARTNER shall provide all warehousing requirements and explain the
         location of the facilities to be used for this purpose. PARTNER will
         also be required to arrange the warehousing and storage facilities at
         installations site to ensure proper storage and protection of all
         equipment, components or other Project goods. PARTNER shall ensure that
         all equipment is adequately packaged and stored to avoid any damage.
         While in such warehousing, the equipment and material will be the sole
         responsibility of PARTNER.

30.4     PARTNER shall provide all required protection, insurance and other
         services to ensure safe delivery of all the equipment, components or
         other Project goods. PARTNER shall be responsible for any damage or
         loss of goods.

ARTICLE 31
INVENTORY

31.1     PARTNER shall provide all services to ensure proper installation of the
         equipment, components or other Project goods in compliance with this
         Agreement, provide optimal operating condition. PARTNER shall provide
         all tools and equipment necessary to install and commission any Project
         equipment procured under this Agreement.

                                       30
<PAGE>

31.2     The provision of materials, labor, equipment, tools and machinery for
         installation consist of the following activities:

         a.       PARTNER shall provide all materials (inclusive of cables,
                  connector and other miscellaneous materials), labor, tools,
                  transportation and telecommunication facilities (telephone,
                  facsimile, etc) and anything else necessary for the completion
                  of work in accordance with this Agreement;

         b.       PARTNER shall employ an adequate supervisory force and an
                  adequate staff of experienced technicians and workmen to
                  complete the Scope of Work in satisfactory and efficient
                  manner within the period as stipulated in this Agreement.

31.3     PARTNER and its subcontractors shall provide all the equipment, tools,
         measuring equipment, machinery and electrical power equipment necessary
         for the implementation of the Scope of Work in Indonesia; and

31.4     Delivery and storage of Project equipment and materials shall consist
         of the following activities:

         a.       PARTNER and its subcontractors shall be responsible for
                  storage arrangement during the interval as from the delivery
                  of equipment until it is required for installation;

         b.       PARTNER and its subcontractors shall be responsible for
                  loading and unloading as well as forwarding of any equipment
                  and materials at all stages up to Commissioning;

         c.       PARTNER and its subcontractors shall be responsible for
                  unpacking (and repacking if necessary), identification and
                  checking of materials and relevant invoices or other
                  documents; and

         d.       PARTNER and its subcontractors shall be responsible for
                  handling and storage of any goods during transportation and at
                  the site.

ARTICLE 32
COMPLIANCE WITH ENVIRONMENTAL STANDARDS

32.1     The Deliverables supplied by PARTNER shall comply with all applicable
         legal requirements and shall not contain any legally prohibited
         materials and/or stocks. The Deliverables may not contain any materials
         and/or stocks that cannot be processed by means of normal waste
         processing method.

32.2     PARTNER allows TELKOM to examine the degree of environmental care and
         provides reasonable assistance to TELKOM in examining the same of the
         manufactures concerned.

                                       31
<PAGE>

32.3     PARTNER shall early provide TELKOM with information to give TELKOM a
         reasonable time to revert it to all parties involved before the
         Deliverables are received:

         a.       materials and/or preparations which exist in the equipment are
                  harmful to people, property or the environment including soil,
                  water and air;

         b.       such materials and/or preparations which are located in the
                  related equipment and components shall be treated at the end
                  of their useful life and at the end of the equipment's useful
                  life and how the relevant components can be removed safely and
                  correctly from the equipment;

         c.       the prevailing regulations for the transport, storage,
                  unloading and processing of the material with respect to the
                  harm which is capable of causing; and

         d.       reasonably and without any costs improve the information
                  distribution/acquisition process at and by TELKOM.

32.4     PARTNER shall represent that the components of equipment are proper for
         reuse or recycling other than by incineration at the end of its useful
         life.

32.5     PARTNER shall provide TELKOM with the above information either by
         electronic information or electronically in a commonly used computer
         program and in a format requested by TELKOM.

32.6     PARTNER shall ensure that all the information provided to TELKOM is
         complete and correct to the best of its knowledge.

CHAPTER 6
OTHER TERMS AND CONDITIONS

ARTICLE 33
DOCUMENTS

33.1     Notwithstanding to other documents which shall be provided under the
         other articles of this Agreement, PARTNER shall deliver 5 (five)
         counterparts of documents with respect to this Agreement for each Sub
         Ring System or Sub Sub-Ring System, consisting of:

         (i)      As-Built Drawing (original, hard copy and soft copy) in 2
                  (two) months after BAST-I;

         (ii)     Devices technical documentation as specified in the Scope of
                  Work prior to the issuance of BAST-I.

33.2     PARTNER shall provide an adequate number of handbooks and drawings that
         shall be required to support equipment maintenance, installation and
         test

                                       32
<PAGE>

         function. Handbooks and drawings shall include assembly drawings,
         wiring information, schematics, drawings, circuit diagrams/description,
         and complete instructions for familiarization, installation, operation,
         theory, maintenance and parts replacement, as well as proper system
         drawings. Instruction handbooks for each piece of equipment shall be
         prepared separately and submitted to TELKOM. Instruction handbooks to
         be supplied shall include:

         a.       System and Installation Handbooks;

         b.       Equipment Handbooks including Standard Operation Procedure
                  (SOP) and Standard Maintenance Procedure (SMP).

33.3     Documents retain: On the completion of Work, any drawings and documents
         related to the Sub-Ring System or Sub Sub-Ring System owned by PARTNER
         that is related to the Work shall be stored for the period of a design
         life of such Devices of Sub-Ring System or Sub Sub-Ring System. It is
         proposed to enable PARTNER to supply each parts necessary to be
         replaced and/or extension of such Sub-Ring System or Sub Sub-Ring
         System agreed by the Parties for the period of a design life of Devices
         of Sub-Ring System or Sub Sub-Ring System.

33.4     Intellectual Property Documents: Any intellectual property related to
         drawings, specification and data issued by each Parties in this
         Agreement with respect to this Agreement remain belongs to the relevant
         Parties.

33.5     Documents Clarification: Any incomplete, hesitation with respect to the
         specification and/or explanation contemplated in each documents, which
         formed any parts of this Agreement, shall be submitted to TELKOM for
         clarification.

ARTICLE 34
SUPERVISORY COSTS AND ACCEPTANCE

34.1     Responsibility of TELKOM: TELKOM shall bear all costs occurred in
         relation to its representative in implementing the supervisory,
         Commissioning and acceptance any Sub-Ring System or Sub Sub-Ring System
         as stipulated in this Agreement, except to any matters related to power
         supply and office room at PARTNER's sites which shall be responsibility
         of PARTNER.

34.2     Responsibility of PARTNER: PARTNER shall, at its own expense, provide
         all tools and staffs necessary to implement the testing, supervisory
         and examining based upon its necessity until BAST-I is issued.

ARTICLE 35
PENALTY AND INDEMNITY

35.1     Penalty Amount: For any delay in the completion of Work, TELKOM is
         entitled to impose a penalty to PARTNER in amount of 1 o/oo (one per
         mil) of

                                       33
<PAGE>

         delayed Purchase Order value exclusive of 10% VAT, for each day of
         delay until the maximum amount of 5% (five percent).

35.2     Amount or amounts of moneys paid under Article 35.1 shall be paid as a
         penalty and shall be paid to TELKOM by PARTNER with respect to any
         delay in the completion of Work, without disregarding to TELKOM's
         rights to terminate this Agreement under Article 38 of this Agreement.

35.3     Period to pay the penalty: Penalty as stipulated in Article 35.1, if
         any, shall be paid to TELKOM by PARTNER not exceeding 30 (thirty)
         calendar days as from written notification on such penalty.

35.4     Payment reduction: If PARTNER fails to pay the penalty as stipulated
         above, TELKOM has the right upon such amount of penalty imposed by
         deducting the payment of Contract Value in Purchase Order.

35.5     Without prejudice to any other provisions in this Agreement, PARTNER
         shall indemnify TELKOM and hold TELKOM harmless from all damages, costs
         and expenses arising out from any Claims (as defined below), if Claims
         arise:

         a.       as consequence of a failure by PARTNER to perform its
                  obligations pursuant to this Agreement or other specific
                  agreement related to this Agreement;

         b.       in connection with the Work performed pursuant to its
                  obligations under this Agreement, unless the occurrence of the
                  damage is not attributable by PARTNER;

         c.       in connection with the faulty design of the equipment or any
                  other material or supplies which are supplied by PARTNER;

ARTICLE 36
REPRESENTATIONS AND WARRANTIES

36.1     PARTNER guarantees that the Equipment and Total System which have to be
         delivered to TELKOM are 100% (one hundred percent) new, contain no
         repaired part, contain no hidden defect and originating not from tort.
         PARTNER shall then guarantee that all Equipment (whether hardware or
         software) delivered to TELKOM under this Agreement shall have the age
         of product Equipment design at least of seven (7) years as of the
         issuance date of BAST-I or as of the time where the Equipment was
         commercially used by TELKOM, whichever earlier.

36.2     Damage. In the event Maintenance Period which is 12 (twelve) months
         since BAST-I (First Acceptance Certificate), due to design error,
         negligence in manufacturing or other similar causes, a loss or damage
         to the Equipment occurs, PARTNER shall proceed the activities to repair
         or replace it by replacement or repairing it under the cost born by
         PARTNER, maximum

                                       34
<PAGE>

         within 2 (two) calendar days as of a written notification from TELKOM
         received by PARTNER.

36.3     Release of Obligation. PARTNER shall be fully released from its
         obligations to repair or replace the defected material during the
         Maintenance Period. In the event the loss or the damaged caused by the
         operation of Equipment not following the procedure determined in the
         operation guidance or other causes which can be proved by PARTNER that
         such loss or damage is not due to PARTNER's default.

36.4     Transportation Cost. All transportation cost in relation with the
         re-export and import, import duty and inklaring in relation with or
         arising from the repairing or replacement of the damaged Equipment
         during the Maintenance Period shall be the responsible of PARTNER in
         accordance to Article 17.

36.5     Maintenance of Equipment after the Maintenance Period. In the event,
         after the expiry of the Maintenance Period of 12 (twelve) months,
         TELKOM requires assistance of Equipment maintenance from PARTNER,
         PARTNER agree to perform such maintenance including the change of the
         same or similar age of Equipment design of spare parts as meant in
         Article 18 under the cost to be jointly agreed.

36.6     Failure by PARTNER. In the event PARTNER fails to complete the Work,
         due to PARTNER's default, and after the lapse of the agreed performance
         schedule, and after the penalty as stipulated in Article 35 has been
         fully enforced, PARTNER is given reasonable time, as jointly agreed, to
         complete the Work. In the event PARTNER keeps failing to complete the
         Work after such period, TELKOM is entitled to the following matters
         cumulatively: (a) terminate this Agreement; and (b) appoint Third Party
         to continue this Agreement provided that any reasonable excess amount
         arising from the continuance of the Work shall be born by PARTNER.

36.7     PARTNER's Guarantee. PARTNER guarantees that all Equipment supplied to
         TELKOM and the performance of the Work are stipulated under this
         Agreement and shall fulfill the state of the art technology owned by
         PARTNER or its license as agreed in the Scope of Work upon the
         execution of this Agreement.

ARTICLE 37
TRAINING, KNOW-HOW AND DEVELOPMENT OF INTELLECTUAL PROPERTY

37.1     PARTNER shall give training to TELKOM's employee and TELKOM shall
         provide qualified employees for the training program provided by
         PARTNER under this Agreement.

37.2     The training shall be conducted domestic and overseas (China) and
         PARTNER proposes a detail schedule for both kind of training based on
         TELKOM's need.

                                       35
<PAGE>

37.3     The training schedule and syllables is attached hereto as Schedule 10.

ARTICLE 38
TERMINATION OF AGREEMENT

38.1     PARTNER's default. PARTNER shall be deemed to have committed a default
         in the event:

         a.       PARTNER does not perform the Scope of Work materially under
                  this Agreement or negligent in performing its obligations
                  under this Agreement so that seriously affects the performance
                  of the Work and fails to remedy the defaults; or

         b.       PARTNER is subject to bankruptcy process, incapability,
                  liquidation or settlement in a jurisdiction, or being in a
                  condition of incapable to pay its debt, or if a receiver is
                  appointed to act for and on behalf of it to secure all or part
                  of its assets; or

         c.       PARTNER commits material breach to its obligations under this
                  Agreement; or

         d.       PARTNER denies this Agreement.

38.2     TELKOM shall immediately deliver a notice concerning the default to
         PARTNER. PARTNER shall take proper action to remedy its defaults and
         deliver to TELKOM a remedy schedule describing PARTNER's remedy
         schedule. The form and detail of notice is discussed and agreed by the
         Parties.

38.3     In the event 30 (thirty) calendar days since the date of notification,
         PARTNER shows no intention to remedy its defaults, without prejudice to
         PARTNER's other rights, TELKOM will terminate this Agreement with a 30
         (thirty) calendars days prior notice.

38.4     Upon the notice of the termination of this Agreement by TELKOM, PARTNER
         shall complete the Work in progress, which shall be accepted and paid
         under this Agreement.

38.5     TELKOM's default. PARTNER shall be deemed to have committed a default
         in the event:

         a.       TELKOM being in bankruptcy process, incapability, liquidation
                  or settlement in a jurisdiction, or being in a condition of
                  incapable to pay its debt, or if a reveicer is appointed to
                  act for and on behalf of it to secure all or part of its
                  assets; or

         b.       TELKOM fails to fulfill its contractual obligations; or

                                       36
<PAGE>

38.6     In the event TELKOM commits any default, PARTNER shall, as soon as
         possible, notify TELKOM by giving detail of TELKOM's default. TELKOM
         shall within 30 (thirty) calendar days since the notification date
         proceed to remedy its default.

38.7     In the event within 30 (thirty) days calendar since the date of
         notification, TELKOM shows no intention to remedy its defaults, PARTNER
         is entitled to terminate this Agreement.

38.8     Upon the termination of this Agreement under Article 38.7, TELKOM shall
         make payment upon:

         a.       each Equipment that has been delivered and/or installed in
                  accordance with Bill of Quantity:

         b.       each Service in accordance with survey result; and

         c.       each material located in the fabrication process (until the
                  date of notification of Work termination letter from TELKOM),
                  transportation or others and included in the Progress Report
                  upon delivery to TELKOM's places;

         d.       reasonable cost for the demobilization in accordance with the
                  Cost Report provided by PARTNER upon the delivery of the Cost
                  Report.

         Payment shall be made by TELKOM under the following terms:

         a.       The documents in Article 38.8 have been received by TELKOM.

         b.       TELKOM shall response to such documents within 10 (ten)
                  working days since the receipt of such. In the event TELKOM
                  gives no response within 10 (ten) days, the documents are
                  deemed to have been received.

         c.       Settlement shall be reached within 60 (sixty) days. Later than
                  60 (sixty) days, dispute shall be brought before BANI as meant
                  in Article 47.

38.9     Payment in accordance with Article 38.8 shall be made not later than 21
         (twenty one) calendar days after the delivery of documents. Letter of
         notification of termination of this Agreement shall replace all other
         documents necessary to receive the payment.

ARTICLE 39
RESPONSIBILITY

39.1     PARTNER's responsibility. PARTNER at its own cost shall take all proper
         action to prevent the loss or damage to TELKOM's personnel or goods.
         PARTNER is responsible for losses and claims arising from intentional
         default or negligence of PARTNER or its employees or workers or
         assistants to the extent as referred to in Article 39.4.

                                       37
<PAGE>

39.2     Damage to equipment. In the event of damage to TELKOM's equipment
         during the performance of Work due to serious intentional default or
         negligence of PARTNER or its employees or workers or staff, a
         certificate shall be made in writing and signed by PARTNER's officer
         and TELKOM's supervisor appointed to supervise the Work. All damage or
         loss referred to in this Article is the responsibility of PARTNER to an
         extent as meant in Article 39.4.

39.3     PARTNER is not responsible for the damage to or loss on the equipment
         or other goods, business disturbance or loss of income, profit or sale,
         loss of information and data, or for special loss, incidental, to which
         a punitive cannot be enforced, indirectly or consequential.

39.4     During the period of this Agreement, all PARTNER' responsibility for
         any action or omission in any kind shall not exceed a maximum amount of
         20% (twenty percent) of contract value in the Purchase Order.

39.5     Loss or damage caused by material negligence or intentional action,
         default or negligence to conduct any action of PARTNER, its employees,
         agents or sub-contractors, including damage or interruption to TELKOM's
         Network which have existed during the migration to the new network
         provided by PARTNER.

39.6     Unless otherwise provided by the prevailing law, the rights and
         remedies herein are exclusive, and the Parties accept the remedies as
         replacement of all rights and remedy lain provided by the law and all
         claims in any form whatsoever arising from or in relation with this
         Agreement or other implementing agreement.

ARTICLE 40
INTELLECTUAL PROPERTY RIGHT

40.1     Intellectual Property Right. Contract Value as meant hereunder has
         covered all amount that has to be paid for the right of the use of the
         Equipment. PARTNER shall do its best effort to ensure that the use of
         the Equipment and its gear by TELKOM is not in breach of any
         Intellectual Property Right of Third Party. The term Intellectual
         Property Right shall include patent, trademark, industrial design,
         copyright and other similar rights. TELKOM shall immediately notify
         PARTNER of a Third Party's claim in relation to HAKI.

40.2     Third Party's claim. In the event there are legal claims or legal
         action against TELKOM in relation to the use of patent and/or
         Intellectual Property Right of Third Party, as meant in Article 40.1,
         PARTNER shall indemnify and release TELKOM from all legal claims,
         whether before the court or other forum, and PARTNER shall settle its
         legal claim at its own cost.

40.3     In the event there is a accusation of breach of Intellectual Property
         Right of Third Party which indemnification is as stipulated in Article
         40.2,

                                       38
<PAGE>

         PARTNER shall take commercially proper action at its own option to (i)
         obtain the license from Third Party; (ii) defend the said accusation
         until final decision and all timely banding; (iii) re-design the
         product accused to be in breach of Intellectual Property Right to avoid
         any breach of Intellectual Property Right.

40.4     The above Article 40.3 states the only and all PARTNER's obligation in
         relation with a claim of HAKI from Third Party.

40.5     PARTNER shall have no obligation in relation with a claim or action
         under this Article unless: (i) PARTNER is immediately notified in
         writing by TELKOM of such Third Party claim within maximum 10 (ten)
         calendar days since TELKOM receives written notification/claim from
         such Third Party; and (ii) TELKOM allows PARTNER to control by itself,
         the defense and settlement of Third Party's claim; and (iii) TELKOM
         provides proper assistance to PARTNER, at PARTNER's cost, with respect
         to the settlement and defense of claim of such Third Party. Without
         prejudice to the foregoing, TELKOM is entitled to hire an advisor, at
         TELKOM's cost, to participate in the defense.

40.6     PARTNER is not responsible for any claim as meant in this Article based
         on: (i) the use of product other than the way it is meant to be used;
         (ii) modification or change of product conducted without permission;
         (iii) operation of product combined with products which are not
         supplied by PARTNER; (iv) compliance of PARTNER to the design
         determined by TELKOM, the use of material or specification provided by
         TELKOM, in which case TELKOM shall defend, indemnify and release
         PARTNER from any claim of HAKI breach.

ARTICLE 41
RIGHT TO USE SOFTWARE

41.1     PARTNER hereby gives TELKOM, under the terms and conditions hereunder,
         a non-exclusive license which is not transferable to use Licensed
         Software in Hardware and Software Documentation for internal purpose of
         TELKOM.

         Without limitation to the foregoing, the license does not include the
         right to modify, copy (unless as meant in paragraph 2 below), port,
         translate or sub-license the Licensed Software and Software
         Documentation.

41.2     TELKOM is entitled to make 1 (one) reserved copy for every item of
         Licensed Software, the use of reserved copy of which is limited only to
         replace the Licensed Software which cannot be operated. TELKOM shall
         maintain records concerning the keeping of reserved copies and deliver
         them to PARTNER upon request.

41.3     Certain program of the Licensed Software and/or Software Documentation
         may be the property of third party giving license to PARTNER which can
         be

                                       39
<PAGE>

         the third party of direct beneficiary or as meant in the terms and
         conditions hereunder in relation with the protection of such property
         of Third Party's software. TELKOM agrees that Third Party beneficiary
         may apply the terms and conditions directly to TELKOM.

41.4     The Licensed Software may contain freeware or shareware which is
         obtained by PARTNER from third party source. No license fee is paid by
         PARTNER over the freeware or shareware, and no license fee may be born
         by TELKOM for the use thereof. TELKOM acknowledges and agrees that
         PARTNER does not guarantee and is not responsible for anything related
         to the ownership and/or use of freeware and shareware by TELKOM.

ARTICLE 42
SPECIAL TERMS

42.1     Confidentiality of Information. The Parties agree to do their best
         effort to keep the confidentiality of Information with respect to this
         Agreement and the Parties shall ensure that their directors, employees,
         agents or their assistants will not disclose any information, data,
         documentation and knowledge to Third Party without written consent from
         other party, nor publish any information, data, documentation and
         knowledge in the form of printings, cassettes, disks or any other
         forms, unless such action is conducted to fulfill reporting obligation
         to related government institution as required by law.

42.2     Exception of Information. The stipulation of Article 42.1 shall not
         apply in the event the Information has become public domain or the
         lapse of 10 (ten) years since the execution of this Agreement.

ARTICLE 43
WORK VARIATION

43.1     Alteration to the Scope of Work. The alteration to the Scope of Work is
         performed under an Amendment to this Agreement or Purchase Order: (i)
         after TELKOM approves the detail survey, design, and engineering, and
         or (ii) after the actual Bill of Quantity is complete and approved by
         TELKOM.

43.2     Upon joint consent of the Parties, TELKOM may at any time amend the
         Scope of Work, Drawings, design specification, place or time of
         delivery, addition or reduction of Work. The said amendment may be
         conducted before or on the beginning of Work under a performance
         schedule, feasibility and variation of Contract Value hereunder or
         Purchase Order that may be agreed by the Parties.

43.3     Cost addition/reduction. In the event the amendment causes addition or
         reduction to the cost and or amend the period of the completion of
         Work, the Contract Value and/or the period of the completion of Work
         shall be

                                       40
<PAGE>

         amended accordingly based on the agreement of the Parties to the
         Agreement or Purchase Order.

43.4     Variation of Agreement. Every variation to the content of this
         Agreement, whether related to the Scope of Work, Contract Value, Period
         or any other part of this Agreement, binds TELKOM and PARTNER if made
         in writing and agreed by TELKOM and PARTNER which is then made into an
         amendment to this Agreement.

43.5     Unit Price. The agreed unit price for the variation of the Scope of
         Work which is performed under this Agreement shall be equal with the
         unit price specified herein until the last BAST-II. This provision
         shall not include the free cost items as apply or in the event no unit
         price is given.

ARTICLE 44
NATIONAL LAWS

PARTNER shall comply with all regulations and government discretions prevailing
in Indonesia as stated in the regulations.

ARTICLE 45
FORCE MAJEURE

45.1     Definition of Force Majeure. Force Majeure shall mean events or
         conditions which are out of the Parties' control in this Agreement
         which cause termination or prevention of performance of this Agreement
         such as earthquake, flood, landslide, typhoon, fire, blast, sabotage,
         riot, disturbance, military action, strike, regulation amendment, order
         or regulation of public officer.

45.2     Notice. Any events categorized as Force Majeure shall be notified to
         other Party within the latest 14 (fourteen) calendar days after the
         occurrence of such event. If the time has lapsed, the other Party is
         entitled to reject the Force Majeure as the reason for delay or failure
         to perform such party's obligation.

45.3     Delay due to Force Majeure. If, due to Force Majeure, the fabrication,
         delivery, construction, installation, training, Acceptance Test or
         other program become temporary discontinued, the period of performing
         such discontinued activity shall be amended by extending the period of
         performance of such affected program. If such thing affects the period
         of completion as meant herein, the Parties then agree to extend the
         period of completion of Work with the days equal with the temporary
         discontinuance of the above program plus a reasonable necessary time to
         demobilize and lock the effect of the Force Majeure (for example, bad
         weather).

                                       41
<PAGE>

45.4     Amendment to Contract Value. The extension of period of completion of
         Work related to the Force Majeure as meant in Article 48.1 shall not
         increase the Contract Value.

45.5     Responsibility in the event of Force Majeure. All damages related to
         the Force Majeure shall be the responsibility of the concerned Party.

45.6     In the event the Work is "temporary discontinued" for more than a total
         of 6 (six) months, by giving 30 (thirty) days prior notice, one of the
         Party is entitled to terminate this Agreement and TELKOM shall pay to
         PARTNER all Work that has been completed until the occurrence of the
         Force Majeure, not included the Equipment that is still in the original
         package and located in TELKOM's Locations.

45.7     For the avoidance of doubt, in the event of termination due to Force
         Majeure, TELKOM shall pay for the following matters by showing the
         supporting documents:

         (i)      on-site Equipment;

         (ii)     Services that have been performed;

45.8     Such termination shall not discharge the rights and obligations of the
         Parties arising before the occurrence of the Force Majeure.

ARTICLE 46
GOVERNING LAW

This Agreement shall be governed by the law of the Republic of Indonesia.

ARTICLE 47
DISPUTE RESOLUTION

47.1     Resolution through deliberation. Any disparity or dispute arising
         between TELKOM and PARTNER with respect to the implementation of this
         Agreement or any predicament related to the implementation of this
         Agreement shall be resolved by deliberation by the Parties based on
         good faith.

47.2     BANI. In the event the dispute is unable to be resolved deliberately
         within 60 (sixty) days, it shall be referred to the Indonesian National
         Board of Arbitration /BANI in Jakarta in accordance with the rules and
         procedures of BANI.

47.3     BANI's award. The Parties agree that BANI's award is final and binding
         and therefore no appeal shall be submitted to any court. Until the
         issuance of BANI's award, all terms and conditions hereunder remain
         valid and the obligations of each Party shall be completed until the
         dispute is declared over.

                                       42
<PAGE>

ARTICLE 48
CORRESPONDENCE

All correspondence in relation to the implementation of this Agreement shall
made in bahasa Indonesia and English and addressed to:

TO TELKOM:

1.       Head of Regional Division III
         PT TELEKOMUNIKASI INDONESIA Tbk.
         Jl. Supratman No. 66A
         Bandung 40122-INDONESIA
         Phone     022-453 2082
         Facsimile 022-720 6541

2.       Head of TELKOM Construction Centre
         PT TELEKOMUNIKASI INDONESIA Tbk.
         GKP TELKOM 6th floor
         Jl. Japati No. 1
         Bandung 40133-INDONESIA
         Phone     022-452 6417
         Facsimile 022-720 6530
         E-mail    tri_d@telkom.co.id

TO PARTNER:

         Head of Fixed Network & Access Division
         Jl. Mohamad Toha No. 77
         Bandung 40253-Indonesia

         Phone     022-5202615
         Facsimile 022-5205394
         E-mail    junianto@inti.co.id

ARTICLE 49
APPOINTED SUB-CONTRACTOR

It is agreed that part of the Work under this Agreement as specified in the
attached Scope of Work shall be sub-contracted to by PARTNER to the Appointed
Sub-Contractors. List of the Appointed Sub-Contractors and Suppliers is as
attached hereto as Schedule 13.

Part of the sub-contracted Work shall be invoiced by PARTNER to TELKOM and the
payment of such invoice shall made directly to PARTNER.

                                       43
<PAGE>
ARTICLE 50
MISCELLANEOUS

50.1  Heading. All headings of articles herein are used for convenience only
      and shall not amend, add or affect certain meaning of the interpretation
      of this Agreement.

50.2  PARTNER at its own cost shall make 26 (twenty six) copies of this
      Agreement to be delivered to TELKOM for the supervision of the
      implementation and other related activities.

50.3  The term "PARTNER" and "PARTNERSHIP" are used for convenience only and
      shall not interpreted or considered as the construction of a partnership
      under any law between the Parties. Without prejudice to other things that
      are contrary, in any way one of Party shall not be considered as partner
      or agent of the other Party or to have authority to act for and on behalf
      of the other Party under this Agreement.

50.4  In any event any article in this Agreement are not enforceable, the said
      Article shall be deleted and considered unenforceable or invalid. The
      Parties shall, to the extent possible, deliberate with good faith to agree
      on a provision which can be implemented which has material similar effect
      and this Agreement shall be amended.

ARTICLE 51
EFFECTIVE DATE OF CONTRACT

This Agreement shall become effective as of the issuance of Work Order (SPMK)
dated 5 November 2003 by TELEKOM to PARTNER.

                                       44
<PAGE>

IN WITNESS WHEREOF, this Agreement is signed in Jakarta by the representatives
of the Parties in two (2) counterparts, sufficiently stamped, each of which
shall have the same legal effect.

Perusahaan Perseroan (Persero)              PT Industri Telekomunikasi Indonesia
PT Telekomunikasi Indonesia, Tbk.           (Persero)

/s/ Kristiono                               /s/ John Welly [STAMPED]
------------------                          ------------------------
KRISTIONO                                   JOHN WELLY
President Director                          President Director

                                       45<PAGE>
                                                                    Exhibit 4.28

                               CONTRACT AGREEMENT

                                      FOR

                           SOFTSWICTH SYSTEM CLASS-4
                              PROCUREMENT PROGRAM
                          THROUGH BUY OR RETURN SCHEME

                                    BETWEEN

                        PT TELEKOMUNIKASI INDONESIA, TBK

                                      AND

                            SANTERA-OLEX CONSORTIUM

                      NO. K. TEL. 264/HK. 910/UTA-00/2003

                            DATED DECEMBER 18, 2003
<PAGE>

                               CONTRACT AGREEMENT
                                       FOR
                           SOFTSWICTH SYSTEM CLASS-4
                               PROCUREMENT PROGRAM
                          THROUGH BUY OR RETURN SCHEME
                                     BETWEEN
                       PT TELEKOMUNIKASI INDONESIA, Tbk.
                                       AND
                            SANTERA-OLEX CONSORTIUM

                       No.: K.TEL. 264 /HK.910/UTA-00/2003

THIS CONTRACT (the "Agreement") is made the day of THURSDAY dated 18th DEC
2003, by and beeween :

I.       PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA,Tbk., a
         network and services telecommunication provider, established under the
         laws of the Republic of Indonesia, having its registered office at
         Jalan Japati No.l, Bandung, for the purpose of this Agreement duly
         represented by AGUS UTOYO in his capacity as Director of HRD and
         Business Support, hereinafter referred to as "TELKOM", and

II.      SANTERA-OLEX CONSORTIUM, a consortium incorporated under Consortium
         Agreement No. 03TEKTEAM0813.dated 20 September 2003 which has been
         legalized by Notaries Benny Djaja, SH, SE, MM., No.1276/W/IX/2003
         dated 25 September 2003, its having office at Wisma Bisnis Indonesia
         Lt-15 JI.Letjen S.Paiman Kav.12 Jakarta - 11480, in this legal act duly
         represented by:

         FADJAR TJOANDA, title President Director of PT. OLEX CABLES INDONESIA
         (Leader) a corporation incorporated under the laws of the Republic of
         Indonesia having its registered office at Wisma Bisnis Indonesia Lt-15
         JI.Letjen S.Parnan Kav.12 Jakarta -11480, and

         TEO KENG SOON, tide Managing Director Asia Pasific Regional of
         SANTERA (Member), a corporation organized and

                                       1
<PAGE>

         existing under the laws of the Stated of California - USA, having its
         address at 80 Raflles Place Level 36 UOB Plaza 1 Singapura - 048624,

         for the purpose of signing of this Agreement duly represented FADJAR
         TJOANDA, title President Director PT.OLEX CABLES INDONESIA hereinafter
         referred to as CONTRACTOR.

(TELKOM and CONTRACTOR are individually hereinafter referred to as a "Party" and
collectively as the "Parties").

                                   WITNESSETH

a.       WHEREAS in anticipacing tele communication business in the upcoming,
         TELKOM desire to modernize its existing telecommunication equipment so
         as to be in compliance to creating performance and quality such
         existing equipment;

b.       Whereas TELKOM through its letter No.TEL.154/LG000/TCC-00/2003 dated 17
         November 2003. has submitted the invitation for second stage to the
         CONTRACTOR;

c.       Whereas to respon the TELKOM's letter as mentioned in point b. above,
         the CONTRACTOR through its letter dated 19 November 2003 and 05
         December 2003 has submitted the bid to TELKOM cq. Tender Committee;

d.       whereas TELKOM trough its letter number: Tel.962/LG000/TCC-00/2003
         dated 12 December 2003, has appointed the SANTERA-OLEX CONSORTIUM as
         a CONTRACTOR to execution the procurement and implementation of Trunk
         Softswtch under Softswitch Class-4 basis which contract amounting of
         US$.4,050,510 and Rp.2.457.191.459,- excluding 10% VAT.

e.       whereas CONTRACTOR through its commitment letter no Ref.No.PSF020-001
         dated 15 December 2003 hereby commit and agree to carry out the Works
         accordance with point d. mentioned above.

                                       2
<PAGE>

f.       WHEREAS between TELKOM and CONTRACTOR has been held the contract
         discussions in accordance with Minutes of Meetings dated 5 December
         2003 and 10 - 12 December 2003;

NOW THEREFORE, based upon the above-mentioned considerations, the Parties hereto
have agreed to bind each other into this AGREEMENT under the following terms and
conditions:

CHAPTER 1
GENERAL TERMS AND CONDITIONS

ARTICLE 1
DEFINITIONS

1.1.     Where the context permits, the following expressions shall have the
         following meanings:

     a.  BILL OF QUANTITIES (BoQ) means the bill of quantities set out in
         Appendix 1, as may be modified from time to time in mentioned in
         Articles 3.3. and 45;

     b.  AGREEMENT shall mean this Agreement together with appendices and
         amendments thereof;

     c.  WORKS means the objective of the Agreement, i.e., supply of Goods,
         survey, design, installation/construction, testing, integrating with
         existing system, complete and operational system as required,
         documentation, training and any other associated services or activities
         whatsoever for the implementation of the Project and the performance of
         the Agreement by the Contractor up to the last issue of FINAL BAC;

     d.  GOODS means equipment includes all kinds of machinery, apparatus,
         materials, articles, spare parts, necessary tools and test equipment
         for operation and maintenance, relevant drawings, operation manuals and
         handbooks which the Contractor is required to supply to

                                       3
<PAGE>

         TELKOM under the Agreement;

     e.  SERVICES means the Contractor's services and activities such as survey,
         design, installation/ construction, progress/ quality control, testing,
         reporting, commissioning and training which the Contractor is required
         to execute under the Agreement.

     f.  PROJECT means Softswitch System Class-4 including all of its supporting
         EQUIPMENT has procured and installed by CONTRACTOR where the SYSTEM can
         be tested, accepted and technical and commercial operation.

     g.  REQUEST FOR PROPOSAL means "General Conditions", "Technical
         Specifications", "Project Specifications" and any additional notice
         which may be given to Bidder.

     h.  PROPOSAL means the written offer in response to the Request for
         Proposal.

     i.  CONTRACT PRICE means the net price (including any applicable Value
         Added Tax) payable to the Contractor for the full and proper
         performance of the Agreement.

     j.  PROJECT MANAGER means TELKOM's staff duly authorized by TELKOM to act
         as its representative for the execution of the Project.

     k.  DEFAULT means any of negligent act or failure in the implementation of
         the Project in respect of the Agreement.

     l.  EXISTING SYSTEM shall mean all of TELKOM's existing and operational
         system in deployment sites;

     m.  SYSTEM means the Softswitch System Class-4 forming a network ready for
         accepted, handed over and operated by TELKOM. The SYSTEM consists of
         subsystems as follows:

         -    Media Gateway controller/Softswitch

         -    Signalling Gateway

                                       4
<PAGE>

         -    Trunk Gateway

         -    Features Server

         -    Network Management System

         -    Power Supply Equipment

     n.  TECHNICAL SPECIFICATION shall mean technical specifications as mutual
         agrred by both parties and as mentioned in the Appendix 9 of this
         AGREEMENT;

     o.  PROJECT SITE means a location or locations which the Goods are to be
         delivered and/or where the Works are to be performed by the Contractor.

     p.  INTEGRATION shall mean the integration between the SYSTEM and EXISTING
         SYSTEM which properly fuction;

     q.  COMMISSIONING means such activities that shall be done by the
         CONTRACTOR in preparation of the ACCEPTANCE TEST;

     r.  ACCEPTANCE TEST (Buy or Return Acceptance Test - BAT) shall mean
         physical and visual checking of the installation and materials, and
         testing of SYSTEM to test the proper functionality as mentioned in
         Article 13 of this AGREEMENT of the EQUIPMENT installed;

     s.  ACCEPTANCE TEST REPORT shall mean written document being made and
         signed by Parties hereto through their respective duly representatives,
         certifying the ACCEPTANCE TEST has been completed and stating the
         results.

     t.  BUY OR RETURN ACCEPTANCE TEST CERTIFICATE (BAC) means an official
         written statement, dated and issued by Telkom cq. Project Manager
         indicating that the Works of Buy or Return basis have been performed,
         completed and tested satisfactorily can be operated and handed over to
         and accepted by TELKOM in accordance with the Agreement.

     u.  TRAINING CERTIFICATE mean an official written statement issued by

                                       5
<PAGE>

         TELKOM cq. Project Manager indicating that the entire work of TELKOM's
         employee training have been completely done by Contractor.

     v.  FINAL BAC means an official written statement, dated and issued by
         TELKOM cq. Project Manager indicating that the entire Work of Buy or
         Return Basis handed over to TELKOM under the Agreement have
         satisfactorily performed and operated including one year warranty
         period and the Contractor has performed all his obligations under the
         Agreement.

     w.  EQUIPMENT shall mean all equipment (both hardware and software),
         cables, apparatus, drawings, manuals, documents and anything else which
         shall be provided by the CONTRACTOR to TELKOM in accordance with this
         AGREEMENT;

     x.  MONTHS and DAYS denote Gregorian calendar months and calendar days,
         respectively.

     y.  BUY OR RETURN BASIS means SYSTEM procurement scheme, where if, the
         SYSTEM can technical and commercial properly function and good
         operation, then TELKOM will buy and make payment to CONTRACTOR. In
         case the SYSTEM fail during acceptance test then TELKOM will return
         such fail equipment according to detail scheme as described in Article
         5 of this Agreement.

     z.  WARRANTY PERIOD means a period of twelve (12) months from BAC;

     aa. EFFECTIVE DATE OF CONTRACT (EDC) means the date on which all the
         provisions of Article 51 are fulfilled.

ARTICLE 2
GENERAL CONDITIONS

2.1.     If any provision of this Agreement or part

                                       6
<PAGE>

         thereof is rendered void, illegal or unenforceable by any legislation
         to which it is subject, it shall be rendered void, illegal or
         unenforceable only to that extent and it shall in no way affect or
         prejudice the enforceability of the remainder of such provision or the
         other provisions of this Agreement.

2.2.     No failure on the part of either Party to exercise and no delay on the
         part of either Party in exercising any right hereunder will operate as
         a release or waiver thereof, nor will any single or partial exercise of
         any right under this Agreement preclude any other or further exercise
         of it.

2.3.     This AGREEMENT shall enure to the benefit of and be binding upon the
         Parties and their respective successors and permitted assigns.

ARTICLE 3
SCOPE OF WORKS

3.1.     The Scope of this AGREEMENT covers the procurement of Softswitch System
         Class-4 and services from CONTRACTOR in Cikupa, Semanggi-2, Bandung
         Centrum, Bandung Japati and Surabaya Kebalen locations according to the
         configuration, capacity plan, Bill of Quantity, and Technical
         Specification as set out in Appendices 1,5 and 9.

3.2.     For the purpose of the implementation of the WORKS, CONTRACTOR shall
         carry out the followings:

         a.   Survey, design and engineering plan;

         b.   Procurement and/or manufacturing of EQUIPMENT and delivery of the
              EQUIPMENT to the LOCATIONS;

         c.   Implementation, INTEGRATION of SYSTEM to EXISTING SYSTEM;

                                       7
<PAGE>

         d.   Warranty for one (1) year period after BAC; and;

         e.   Software maintenance, up date and up grade for 1 (one) year from
              BAC

         f.   All risks insurance;

         g.   Commissioning and Testing;

         h.   Training & On the Job Training.

3.3.     The Scope of WORKS shall be adjusted and executed under an Amendment to
         this AGREEMENT:

         a.   after the detailed survey, design and engineering is completed and
              approved by TELKOM; and

         b.   after the final As-Built Bill of Quantity is completed and
              approved by TELKOM

3.4      This AGREEMENT is a contract covering various steps involved in the
         Softswitch System Class-4 Procurement Program on a turnkey basis with
         referrence to Article 5 of this Agreement.

3.5.     "TURNKEY BASIS" pursuant to the Scope of Work, upon the effective date
         of this contract, CONTRACTOR shall be fully and solely responsible for
         the survey, design, development, manufacture, delivery, supply,
         installation, integration and Commissioning of the Network, and the
         remedying of any defects, so as to make the SYSTEM ready for service.
         CONTRACTOR shall also do everything necessary as reasonably may be
         inferred from this AGREEMENT as being required of CONTRACTOR to perform
         all of its obligations under this Agreement.

ARTICLE 4
PERIOD AND WORKS
IMPLEMENTATION

4.1.     The WORKS. The WORKS the Softswitch System Class-4 Procurement Program
         shall

                                       8
<PAGE>

         be carried out and completed entirely within four (4) months and
         fourteen (14) calendar days from the EDC up to May 2, 2004.

4.2.     Delays. In the event CONTRACTOR has a delay in the completion of the
         WORKS as mentioned in Article 4.1 and 4.2 above then CONTRACTOR shall
         be imposed liquidated damages as referred to in Article 35 of this
         AGREEMENT.

4.3.     If such delays are due to (i) CONTRACTOR and TELKOM agreed upon a
         variation of WORKS as mentioned in Article 46, or (ii) there is any
         instruction to stop the Work from TELKOM or (iii) Force Majeure, then
         CONTRACTOR shall be permitted to extend the completion period of the
         WORKS based on approval from TELKOM.

ARTICLE 5
BUY OR RETURN SCHEME

5.1.     The Softswitch System Class-4 Project shall be executed through the
         procurement program under the arrangement of Buy or Return scheme.

5.2.     After completetion of the Project installation period as described in
         Article 5.1. above, that the TELKOM's Team together with CONTRACTOR's
         Team shall conduct BAT of the SISTEM which is deployed by CONTRACTOR to
         ensure whether such SISTEM is successful and be properly function so
         such SYSTEM can be commercial and technical operated according to
         Technical Specification as stated in the Agreement or such SISTEM is
         failed.

5.3.     If the result of acceptance test of SYSTEM by Team is stated that such
         SYSTEM can be commercial and technical operated according to Technical
         Specification as stated in the Agreement, that TELKOM cq. Head of
         TELKOM Construction Centre will issue the BAC as proof acceptance of
         the works and payment of such works.

                                       9
<PAGE>

5.4.     If the result of acceptance test of SYSTEM according to Article 13 by
         Team is stated that such SYSTEM unsuccessfull and not function properly
         and can not be commercial and technical operated according to Technical
         Specification as stated in the Agreement, that this Agreement shall be
         terminated and CONTRACTOR shall remove the equipment has been intalled
         by CONTRACTOR in the construction locations as described in Article
         3.1. above without any payment from TELKOM to and/or reimburse costs
         occure by CONTRACTOR. By failure of such SYSTEM has been installed by
         CONTRACTOR, TELKOM will issue the official written indicating that such
         SYSTEM is failed to function, according to technical specification
         requirement.

5.5.     CONTRACTOR shall remove the equipment as specified in Article 5.4. at
         the latest one (1) week from issued such TELKOM's statement letter, the
         delay to remove of such equipment will cause to charge any costs by
         TELKOM to utilize the TELKOM's facilities by CONTRACTOR according to
         applicable TELKOM's tariff.

5.6.     In case the SYSTEM failure because of incorrect information given by
         CONTRACTOR when the section pass/fail in the evaluation process,
         CONTRACTOR shall be imposed liquidated damage as amount of the contract
         price as described in Article 19 plus any costs occure by TELKOM
         according to Statement Guaranty Letter on Pass/Fail Clarification for
         TELKOM Softswitch System Class 4 Procurement Program dated 21 October
         2003 issued by CONTRACTOR.

                                       10
<PAGE>

ARTICLE 6
SITE PREPARATION, ACQUISITION, RIGHTS OF WAY AND PERMITS

6.1      The Parties shall be responsible for preparing the Locations/Sites
         where the Deliverables are to be installed, in accordance with this
         Agreement.

6.2      CONTRACTOR shall perform all necessary tasks to ensure Location/Site
         preparation for Network roll-out in coordination with TELKOM, as
         follows:

6.2.1.   Arrange and acquire all the permits required to perform the work for
         and on behalf of TELKOM, such as trenching/road excavation permits,
         installation permits, rights of way, building construction permit (IMB)
         and other permits necessary either from local municipality or other
         Parties. The costs for acquiring the permit have been included in the
         unit price and shall not be priced separately;

6.3      In the event omission of or delay in providing licenses, clearances, or
         permits by public authorities occurs, which affects the implementation
         schedule, provided all requirements have been fulfilled by CONTRACTOR,
         and after TELKOM provides its assistance, then the Parties shall agree
         to extend the implementation period.

ARTICLE 7
APPENDICES

7.1.     Appendices. The following documents shall be attached and constitute as
         integral parts of this AGREEMENT:

         Appendix 1 : Price Breakdown, Bill of Quantity and Spare;

         Appendix 2 : Schedule of Implementation and Project Management Plan;

         Appendix 3 : E-Auction and Discussion Minutes of Meetings;

         Appendix 4 : Responsibility Matrix

         Appendix 5 : Configuration and Scope of Works;

                                       11
<PAGE>

         Appendix 6 : Appointement Letter to CONTRACTOR;

         Appendix 7 : CONTRACTOR's Commitment Letters;

         Appendix 8 : Consortium Agreement;

         Appendix 9 : Technical Specification;

         Appendix 10 : Training's Syllabus;

         Appendix 11 : Buy or Return Acceptance Test Process;

         Appendix 12 : Test Items of Buy or Return;

         Appendix 13 : RFP & QA;

         Appendix 14 : RFQ & QA;

         Appendix 15 : Business Ethics.

7.2.     Discrepancies. In the event of discrepancies between the provisions of
         this AGREEMENT with Appendices thereof, then the provisions of this
         AGREEMENT shall prevail.

CHAPTER 2.
TECHNICAL TERMS AND CONDITIONS

ARTICLE 8
TECHNICAL REQUIREMENTS

The WORKS shall be carried out under this AGREEMENT in accordance with TECHNICAL
SPECIFICATIONS as referred to in Appendix 9 of this AGREEMENT;

ARTICLE 9
QUALITY ASSURANCE

9.1.     CONTRACTOR shall make all reasonable efforts to ensure TELKOM, is
         entitled to inspect the production and installation phases of the
         processes of all members of CONTRACTOR's consortium. CONTRACTOR shall
         co-operate with TELKOM in case TELKOM elects at own expense to conduct
         such inspections.

9.2.     CONTRACTOR warrant any equipment or a component thereof is produced by
         a sub-contractor working for CONTRACTOR, CONTRACTOR shall include
         similar provisions in its contract with the sub-contractor in order to
         enable TELKOM to perform inspections of a similar nature.

                                       12
<PAGE>

9.3.     CONTRACTOR warrant that the good performance of SYSTEM of the
         Softswitch System Class-4 until the expiry of WARRANTY PERIOD through
         repair or replacement as necessary.

ARTICLE 10
SURVEY, DESIGN, AND PLANNING

10.1.    The planning and design activities for the Project shall be able to
         fully accommodate the DRM mechanisms as described in Article 16 of this
         AGREEMENT.

10.2.    The planning and design works shall consist of Survey of the Location /
         Site(s) that CONTRACTOR and TELKOM together to determine the optimum
         location/site for installation of the equipment, provided that the
         Location has been determined by TELKOM.

ARTICLE 11
INSTALLATION PROCEDURES AND STANDARDS

10.1.    CONTRACTOR shall provide all services to ensure proper installation of
         all equipment, provide optimal operating conditions and maximize its
         long term viability. CONTRACTOR shall provide all tools and equipment
         necessary to install and commission their equipment.

10.2.    CONTRACTOR shall provide equipment installation services and shall
         consist of the following activities:

         a.   provision of materials, labor, equipment, tools and machinery for
              installation;

         b.   materials delivery and storage;

         c.   transportation of goods;

         d.   installation of the equipment;

         e.   cleaning-up sites; and

         f.   site preparation plan and drawings.

                                       13
<PAGE>

10.3.    Provision of materials, labor, equipment, tools and machinery for
         installation shall consist of the following activities:

         a.   CONTRACTOR shall provide all materials, labor, tools,
              transportation, telecommunication facilities (telephone,
              facsimile, etc.) and everything else necessary for completion of
              work in accordance with this AGREEMENT;

         b.   CONTRACTOR shall employ an adequate supervisory force and an
              adequate staff of experienced engineers consisting of technicians
              and workmen to complete the work in a satisfactory and workman
              like manner within the time specified in this AGREEMENT;

         c.   CONTRACTOR shall itemize and provide all equipment, tools,
              measuring equipment, machinery and electricity necessary for
              execution of the Scope of Work in Indonesia; and

 10.4.   Installation of the equipment shall consist of the following
         activities:

         a.   CONTRACTOR shall be responsible for providing connection and
              integrating sub-components into system units, i.e. Transmission
              Equipment and Outside Plant (OSP);

         b.   CONTRACTOR shall be responsible for system unit check and shall
              ensure the each system units functions as required.

 10.5.   Cleaning-up at each Location/site shall be conducted during
         installation periods and consist of the following activities:

         a.   CONTRACTOR's Sub-contractor shall keep the work and storage areas
              clean and tidy and shall remove daily all combustible rubbish from
              inside and near the buildings, structures and plant;

                                       14
<PAGE>

         b.   Upon completion of each installation, CONTRACTOR shall remove from
              the Location/site as early as possible all tools, appliances,
              packing cases and plant not constituting an integral part of this
              AGREEMENT.

         c.   CONTRACTOR shall either remove or level as required by TELKOM's
              Project Manager, all excess earth or spoils resulting from any
              excavation.

         d.   CONTRACTOR shall make good to the satisfaction of TELKOM's Project
              Manager at his own expense, all damages to buildings, plants,
              finishes etc caused by contractor, his subcontractor(s) and/or
              their employees.

ARTICLE 12
LOCAL SUPPORT INFRASTRUCTURE

CONTRACTOR shall provide TELKOM access to its local technical staff to ensure
effective deployment, operations and timely problem solving. CONTRACTOR shall
ensure such local support is timely, cost effective, and of high quality in
order to meet TELKOM's desired service levels.

ARTICLE 13
ACCEPTANCE TEST AND HAND OVER

13.1.    ACCEPTANCE TEST. The test procedure shall be completed and agreed upon
         by the Parties prior to the first ACCEPTANCE TEST. ACCEPTANCE TEST
         shall be carried out after the SYSTEM is commissioned by CONTRACTOR and
         is ready for ACCEPTANCE TEST. CONTRACTOR shall carry out ACCEPTANCE
         TEST over the whole WORKS as referred to in this AGREEMENT, at the
         LOCATIONS of installation in accordance with ACCEPTANCE TEST schedule
         which shall be submitted by CONTRACTOR, to TELKOM. The ACCEPTANCE TEST

                                       15
<PAGE>

         shall be carried out in the presence of both parties' authorized
         representatives.

13.2.    Prior Notice to ACCEPTANCE TEST. CONTRACTOR shall give notification to
         TELKOM within fourteen (14) calendar days prior to the date of the
         ACCEPTANCE TEST. Within seven (7) calendar days after receipt of such
         notification, TELKOM shall notify CONTRACTOR of its approval for such
         ACCEPTANCE TEST schedule or TELKOM may propose another ACCEPTANCE TEST
         schedule which shall not be later than seven (7) calendar days after
         CONTRACTOR's proposed date. In the event TELKOM does not respond to
         CONTRACTOR's notification within seven (7) calendar days, then TELKOM
         shall be deemed to approve such ACCEPTANCE TEST schedule.

13.3.    ACCEPTANCE TEST implementation. Subsequent to the implementation of the
         SYSTEM, due for ACCEPTANCE TEST, the ACCEPTANCE TEST shall be carried
         out to test the compatibility within the SYSTEM that has been completed
         and EQUIPMENT being installed, with TECHNICAL SPECIFICATIONS agreed by
         CONTRACTOR and TELKOM. Further, CONTRACTOR shall deliver the ACCEPTANCE
         TEST REPORT to TELKOM.

         In case TELKOM's Team can not attend to acceptance test according to
         mutual greed schedule than the conducting acceptance test shall be
         rescheduled maximum for fourteen (14) calendar days. If TELKOM Team not
         attend after such reschedule then CONTRACTOR can conduct acceptance
         test without TELKOM's team attend and the result of test shall be
         deemed by TELKOM.

13.4.    Error rectification obligations. Should there be any non-compliance
         with the TECHNICAL SPECIFICATIONS (hereinafter referred to as "Error")
         during ACCEPTANCE TEST period, TELKOM and CONTRACTOR shall record such
         Error in writing and CONTRACTOR shall start to rectify such Error
         according to BAT requirement.

                                       16
<PAGE>

13.5.    Major Remaining Errors. If the result on ACCEPTANCE TEST indicates
         EQUIPMENT which is not operable, or causes damage or loss of data or
         software, or causes corrupted data (hereinafter referred to as "Major
         Remaining Errors"), then CONTRACTOR shall notify TELKOM in writing (a)
         to stop the ACCEPTANCE TEST or (b) to extend the ACCEPTANCE TEST
         period.

         In case of (a) above, after the Error has been rectified, CONTRACTOR
         shall notify TELKOM seven (7) calendar days before conducting
         re-testing.

13.6.    Minor Remaining Errors. If ACCEPTANCE TEST result indicates the
         EQUIPMENT shall cause failures other than Major Remaining Errors that
         do not affect the fundamental operation of any parts of the SYSTEM,
         then CONTRACTOR shall rectify such Minor Remaining Errors within three
         (3) months after the issuance of BAC.

13.7.    Checking on Acceptance Test Report. Upon the completion of such tests
         as referred to in this Article and CONTRACTOR has submitted reports on
         the SYSTEM, and any other requirements have been made available in
         accordance with the provisions of this AGREEMENT, TELKOM shall check
         all such reports of CONTRACTOR. In the event any part of functionality
         is not in compliance with TECHNICAL SPECIFICATION under this AGREEMENT
         or incomplete, TELKOM shall notify CONTRACTOR in writing within seven
         (7) calendar days from the presentation by CONTRACTOR of said reports.

13.8.    Cost for Corrections. All costs incurred in connection with corrections
         as referred to in this Article shall become the full responsibility of
         CONTRACTOR.

13.9.    BAC for SYSTEM shall be issued if the following activities are
         fulfilled;

             a.   installation is completed;

                                       17
<PAGE>

              b.   SYSTEM has been tested and is functioning properly in
                   accordance to the TECHNICAL SPECIFICATION and test items
                   without pending items that are detrimental to the functional
                   operation;

              c.   SYSTEM is possible to be commercially operated.

13.10.   The issuance of BAC (Buy or Return Acceptance Certificate);. The SYSTEM
         shall be accepted if CONTRACTOR has shown to TELKOM all requirements in
         accordance with the TECHNICAL SPECIFICATIONS as referred to in Appendix
         9 have been fulfilled under the following conditions:

         a.   Within 7 (seven) calendar days after result of stability test,
              TELKOM will notify CONTRACTOR whether the SYSTEM has been accepted
              or not;

         b.   In the event such reports indicate SYSTEM has been tested and is
              functioning properly in accordance to the TECHNICAL SPECIFICATION
              without pending items that are detrimental to the functional
              operation, then TELKOM c.q. Project Manager will issue BAC for the
              relevant SYSTEM within seven (7) calendar days after submission of
              ACCEPTANCE TEST REPORT and Stability Test Report.

              Should TELKOM for whatsoever reason neither inform CONTRACTOR of
              non-acceptance in writing, nor issue the BAC within the above
              mentioned seven (7) days period or TELKOM commercially operate the
              SYSTEM, then the SISTEM shall be deemed accepted and the BAC shall
              be issued.

         c.   The issuance of BAC by TELKOM shall not be withheld due to Minor
              Remaining Errors by taking into

                                       18
<PAGE>

              consideration that (i) such deficiency shall not adversely affect
              normal operation and maintenance work of the SYSTEM in accordance
              with the Technical Specifikation as referred to in Appendix 5;
              (ii) such deficiency will be put as an attachment to the BAC in
              order for CONTRACTOR to rectify in accordance with Article 13.7.

 13.11.  FINAL BAC shall be issued by TELKOM cq. Project manager, twelve (12)
         months after the date of BAC provided CONTRACTOR has fulfilled the
         following conditions:

         a.   all remaining errors have been rectified and reported;

         b.   all warranty obligations have been fulfilled;

         c.   As-Built documentation has been completed and submitted.

ARTICLE 14
GOODS DELIVERY PROCEDURE

14.1.    All physical deliveries of Deliverables covered by this Agreement shall
         be accompanied by a consignment note, which includes:

         a.   Name and registered office of CONTRACTOR;

         b.   Agreement Number;

         c.   Date of shipment and delivery;

         d.   Quantities and type of goods included; and

         e.   Certificate of Origin.

14.2.    Delivery of equipment to the intended Location/Site shall be
         implemented by reference to complete Systems and not piecemeal, except
         as otherwise mutually agreed between the Parties.

14.3.    CONTRACTOR shall be responsible for delivery of the equipment,
         components and software from the country of origin to the point of
         landing in Indonesia, and from the point of landing to the intended
         Location/Site as specified in this AGREEMENT in accordance with
         Appendix 3 (Implementation Schedule and Project Management). CONTRACTOR

                                       19
<PAGE>

         and shall be responsible for all inland transportation shipping costs
         to the intended Location/Site.

14.4.    CONTRACTOR represents and warrants that all equipment and components
         delivered are type-approved by the relevant authorities in Indonesia
         and have passed quality assurance by TELKOM in accordance with the
         quality assurance as mentioned in Article 9 and in Appendix 12
         (Acceptance Test Items) of this AGREEMENT.

ARTICLE 15
REPORTS AND MEETINGS

15.1     Written reports. CONTRACTOR shall give written reports (progress
         report) on any stage of the WORKS in accordance with Schedule of Works
         Implementation as provided in Appendix 2, at least once in a month,
         which shall be made in five (5) copies, four (4) shall be sent to
         TELKOM c.q. Project Manager and another one shall be submitted to HEAD
         OF CONSTRUCTION CENTRE.

15.2     Periodical meetings. For the purpose of the smoothness of the WORKS and
         to cope with any technical obstacle, TELKOM and CONTRACTOR agree to
         convene periodical meetings at least once a month or any other time
         interval as agreed by both Parties from time to time.

ARTICLE 16
PROJECT MANAGEMENT

16.1.    CONTRACTOR shall propose a Project Management Plan ("PMP"), in a form
         as mentioned in Appendix 2. TELKOM and CONTRACTOR shall discuss and
         mutually agree on the details of the PMP.

16.2.    Prior to start-up of Project activities, the Parties shall have agreed
         on a PMP containing at least the following:

         a.   Role and responsibility;

                                       20
<PAGE>

         b.   Project organization and personnel;

         c.   Reporting of progress and issues.

16.3.    CONTRACTOR shall appoint the Project personnel as described in the PMP
         including a Project Manager who shall be responsible for contact with
         TELKOM with respect to resolving issues arising in the course of
         Project implementation.

16.4.    The identity and qualifications of all Project personnel proposed by
         CONTRACTOR to work on the Project, including the Project Manager as
         mentioned in the PMP shall be notified in writing by CONTRACTOR to
         TELKOM before appointment. The Project Manager shall only be appointed
         with TELKOM's prior approval. For all other Project personnel, TELKOM
         shall inform CONTRACTOR of any objections within seven (7) Days of
         notification and any Project personnel to whom TELKOM objects shall not
         be appointed. Replacements must be equally well qualified and
         appropriate for the Project.

16.5.    At TELKOM's sole discretion, TELKOM may appoint its Project Manager
         with whom CONTRACTOR Project personnel shall maintain close cooperation
         and communication at all times. TELKOM may also appoint local
         supervisors with whom CONTRACTOR'S local Project personnel shall
         maintain close cooperation and communication at all times.

         The Project Manager as appointed by TELKOM for the execution of the
         WORKS under this AGREEMENT shall be HEAD OF CONSTRUCTION CENTRE,
         however the owner of the Project which has been appointed in this
         AGREEMENT is LONG DISTANCE DIVISION.

16.6.    TELKOM may object to and, after consultation with CONTRACTOR direct
         CONTRACTOR to remove from any site

                                       21

<PAGE>

         immediately any person employed by CONTRACTOR or any sub-contractor at
         the site who, in the reasonable opinion of TELKOM, misconducts himself,
         has proved to be unsuitable under the terms of the Scope of Work or is
         incompetent or negligent in the performance of his duties, and such
         person shall not be employed again at any Project site except with the
         prior written approval of TELKOM.

16.7.    CONTRACTOR shall submit to TELKOM the required progress report as
         mentioned in the Scope of Work. With respect to any period covered by a
         progress report, in the event that CONTRACTOR fails to inform TELKOM of
         any problem, TELKOM shall be entitled to presume that no such problem
         arose during such period. However, submission by CONTRACTOR to TELKOM
         of the specified progress reports will not alter, amend or modify
         CONTRACTOR obligations pursuant to any provision of this Agreement.

16.8.    CONTRACTOR shall provide complete project management support to the
         Project including without limitation, managing the constituents members
         of CONTRACTOR and other suppliers, as well as managing the acquisition
         of required sites, permits and rights of way.

16.9.    CONTRACTOR shall immediately deliver newest Performance Schedule to
         TELKOM. The newest Performance Schedule shall contain important
         progress step (milestones) including:

         a.   Starting performance on any location;

         b.   Starting detail survey on any location;

         c.   Finishing installation, development design, related drawing with
              Project;

         d.   Date of readiness, for commisioning, and Acceptance Test for any

                                       22

<PAGE>

              location/Site;

16.10.   Deliver of equipment, component, software and service by CONTRACTOR
         shall fulfill provisions of this AGREEMENT include schedule and
         progress step (milestones) as set out in Appendix 2 (Schedule of
         Implementation).

16.11.   Any changes of Schedule of Implementation shall be based on mutually
         agreement of the Parties and be legally if its done as Variation duly
         signed by legal representation from each Party.

16.12.   Site Survey

         1.   After the Effective Date of this AGREEMENT award, the CONTRACTOR
              shall carry out a detailed site survey and engineering taking into
              consideration the detailed design standard provided by the
              CONTRACTOR and approved by TELKOM. The CONTRACTOR shall justify
              the installation/construction designs together with the
              associated bill of quantities.

         2.   Site Surveys shall aim to include, but not limited to, the
              following activities:

              (i)   Determining fiber optic installation route, new building and
                    its supporting facilities including assessing reusability of
                    existing duct systems

              (ii)  Baselining reusable supporting facilities, including power
                    supply, buildings.

              (iii) Determining lay-out/placement of the transmission equipment
                    within TELKOM's STO or other TELKOM's building.

         3.   CONTRACTOR shall take responsibility for the organizational and
              administrative activities required to conduct the Site Surveys.
              CONTRACTOR shall be responsible for all reasonable costs of
              performing the Site Surveys, including

                                       23

<PAGE>

              personnel, transportation, accommodation, communications; and
              shall fund at its own expense the cost of other related party in
              performing any of the work or analyses contemplated as mentioned
              in Article 16.12. TELKOM shall only be responsible for the costs
              of providing accommodations and transport for TELKOM staff
              involved in the Site Surveys.

16.13.   Design Review Meeting (DRM)

         1.   After the performance detailed survey, TELKOM dan CONTRACTOR shall
              perfom Design Review Meeting.

         2.   The first DRM shall be conducted immediately after detailed
              survey. Further DRMs only intended to be held in case there is any
              modification design.

         4.   CONTRACTOR shall take responsibility for the organizational and
              administrative activities required to organize all DRMs.
              CONTRACTOR shall be responsible for all reasonable costs of
              convening the DRM and shall fund at its own expense the analysis
              as mentioned in Article 16.13 TELKOM shall only be responsible for
              the costs of providing accommodations and transport for TELKOM
              staff attending a DRM.

         5.   The Parties shall produce minutes of each DRM in which any
              substantive agreements shall be recorded as agreements of the
              Parties, as evidenced by signature of the minutes by the
              authorized representative of each Party.

         If the Parties cannot reach agreement at the DRM, the matters shall be
         escalated to senior management of each Party for resolution.

16.14.   Representation at Site Survey and DRM

                                       24

<PAGE>

         TELKOM and CONTRACTOR shall notify each other from time to time
         regarding their appointments (and any changes to such appointments) of
         authorized representatives who have authority to execute or make
         agreements in any DRM and/or monthly meeting on their behalf.

ARTICLE 17
WARRANTY PERIOD

17.1.    The WARRANTY PERIOD a period of 12 months starting from the date of BAC
         for SYSTEM or the date the EQUIPMENT has been used commercially by
         TELKOM, whichever date comes earlier.

17.2.    CONTRACTOR warrants the EQUIPMENT shall work properly and stable in
         accordance with TECHNICAL SPECIFICATION during the WARRANTY PERIOD. In
         the event of any damage, error or technical malfunction in normal
         operation during the WARRANTY PERIOD, CONTRACTOR shall repair and/or
         replace the damage, error and technical malfunction at its own cost.
         CONTRACTOR warrants for the period as mentioned in paragraph 1, the
         hardware is free from manufacture's defect and shall comply to the
         function as described in TECHNICAL SPECIFICATION. TELKOM's exclusive
         remedy for breach of the warranty is the repair or replacement of the
         defective EQUIPMENT.

17.3.    In case damage happen during warranty period as mentioned in
         sub-article (2) of this article, then TELKOM shall notify to PARTNER
         officially at the latest 30 (thirty) calendar days after damage is
         found. PARTNER has obligation to repair damages or replace with new one
         within reasonable period which is agreed by both parties after formal
         notification of TELKOM except PARTNER could prove that damages is
         caused as

                                       25

<PAGE>

         mentioned in Article 39 clause (3) of this Agreement which is submitted
         by PARTNER within 14 (fourteen) days to TELKOM after receipt of such
         notice. All costs, fees and other costs arise due to repair or
         replacement become PARTNER's obligation and responsibility

17.4.    Defects during WARRANTY PERIOD. In the event of major defect or
         disruption to the SYSTEM within twelve (12) months period, save to the
         extent of Force Majeure events and/or events for which CONTRACTOR not
         liable under this AGREEMENT, which cumulatively shall exceed or equal
         to 24 (twenty four) hours of non availability of SYSTEM, then the
         issuance of the FINAL BAC shall be postponed and the WARRANTY PERIOD of
         such SYSTEM shall be extended to the number of days of such disruption.
         CONTRACTOR shall use its best commercially reasonable efforts to
         provide alternative solution at its own cost.

17.5.    CONTRACTOR shall have no obligation and/or responsibility to rectify
         any errors and/or non-compliances or subsequent errors and
         non-compliances if these have been caused by TELKOM or third parties
         which are not nominated or appointed by CONTRACTOR.

ARTICLE 18
SPARE PARTS

18.1.    During WARRANTY PERIOD, all parts that are required to be replaced,
         shall be supplied by CONTRACTOR without charge unless CONTRACTOR is
         released from this obligation in

                                       26

<PAGE>

         accordance to Article 39.3. of this AGREEMENT.

18.2.    CONTRACTOR shall provide prices and suppliers (local or overseas)
         information, regarding spare parts, sub assemblies, etc., and advise
         the required quantities to be purchased and stocked for the successful
         maintenance of the SYSTEM.

18.3.    CONTRACTOR shall provide a list of spare part, description and quantity
         of EQUIPMENT, module and sub module level as appropriate.

18.4.    CONTRACTOR shall agree to supply the spare parts to TELKOM and TELKOM
         shall have the right to purchase these spare parts from CONTRACTOR for
         TELKOM's maintenance requirements at a price to be agreed upon. The
         spare parts or suitable equivalents with the same performance should be
         available throughout the EQUIPMENT design lifetime of the SYSTEM.

18.5.    CONTRACTOR shall agree to provide a list of spare part and consumable
         items, to the best of its knowledge, to be purchased and stocked by and
         to be property of TELKOM for maintenance and usage for the SYSTEM for a
         period of six (6) years after FINAL BAC.

18.6.    CONTRACTOR shall provide spare parts and consumable items to be
         purchased and stocked by TELKOM for a minimum period of six (6) years
         after the final production of each EQUIPMENT, unless suitable
         equivalents for spare parts and consumables are available. Subsequent
         to this, should supplies of any spare parts relevant to the SYSTEM be
         discontinued, CONTRACTOR shall notify TELKOM at least one (1) year in
         advance of such discontinuation.

18.7.    Spare part and tools as quoted in the Bill of Quantity according to
         Appendix I of

                                       27

<PAGE>

         this AGREEMENT shall be delivered by CONTRACTOR upon the BAC of
         relevant SYSTEM where the spare part pool are located.

CHAPTER 3
COMMERCIAL TERMS AND CONDITIONS

ARTICLE 19
CONTRACT PRICE

19.1     The Contract Value excluding VAT currently at 10%, but including income
         tax, other taxes, duties and costs in accordance with the prevailing
         laws and regulations for execution of the Project under this AGREEMENT
         is amount of US$.4,050,510 (Four million fifty thousand five hundred
         and ten US Dollar) and Rp.2,457,191,459 (Two billion four hundred fifty
         seven million one hundred ninety one thousand four hundred and fifty
         nine Rupiah) with the details as mentioned in Appendix 1 this
         AGREEMENT.

19.2.    Summary of Contract Price as described in Article 19.1. above are:

                    SOFTSWITCH SYSTEM CLASS-4 PRICE SUMMARY:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------
NO.        SUB ELEMENT           TOTAL COST (IDR)          TOTAL COST (US)
--------------------------------------------------------------------------
<S>    <C>                       <C>                       <C>
 1     Goods and Services         2,425,600,214              3,789,444
--------------------------------------------------------------------------
 2     Spare Part                    31,591,245                202,366
--------------------------------------------------------------------------
 3     Training                               -                 58,700
--------------------------------------------------------------------------
       TOTAL                      2,457,191,459              4,050,510
--------------------------------------------------------------------------
</TABLE>

19.3.    However, both TELKOM and CONTRACTOR agree in the event the Scope of
         Works is amended due to the result of the Design Review Meeting as well
         as the final survey and "As-Built Bill of Quantity" SYSTEM, then the
         final AGREEMENT PRICE shall be calculated and adjusted accordingly as
         required.

                                       28

<PAGE>

19.4.    No further costs. AGREEMENT PRICE set forth in the breakdown of costs
         as as mentioned in Appendix 1 of this AGREEMENT shall cover the
         entirety of parts which are required for the implementation of the
         WORKS in accordance with this AGREEMENT, save to the extent any
         additional or reduced WORKS as required by TELKOM in writing as
         referred to in Article 44 (Works Variation) and Article 3.3 (Adjustment
         of Scope of Work) with respect to Additional or Reduction of the WORKS
         under this AGREEMENT.

19.5.    Unit prices quoted in Appendix 1 (Price Summary, Bill of Quantity and
         Spare) are firm fixed prices and shall not be varied except as
         permitted under this AGREEMENT. Unit prices for equipment are deemed to
         include payments by CONTRACTOR for all costs of freight, insurance,
         customs and import duties, taxes related to importation, clearance at
         the port of entry, inland transportation, warehousing and delivery to
         the Location/Site where the equipment to be installed. Unit prices for
         equipment related services shall include survey, planning, design,
         permits, rights of way, installation, integration, project management,
         insurance up to transfer of title, testing and commissioning costs,
         services related to land acquisition, and all related materials and
         expenses to complete the Project on a turnkey basis as contemplated as
         mentioned in Article 3.5. Import or custom duties are included in the
         unit prices as mentioned in Appendix 1 and shall remain fixed.

ARTICLE 20
INSURANCE AND SAFETY

20.1.    CONTRACTOR shall arrange and cover the insurance at his own cost for
         the shipment, during transportation, installation until BAC for all
         risk according to this AGREEMENT.

20.2.    The Insurance company to be appointed by the CONTRACTOR for local
         transportation and terrestial installation

                                       29

<PAGE>

         works shall be a local Indonesian Insurance Company PT Asuransi Export
         Indonesia (PT ASEI) through the broker PT Sarana Janesia Utama (PT
         SJU).

20.3.    CONTRACTOR shall arrange the Social Security (ASTEK) insurance for his
         own employees at his own cost.

ARTICLE 23
TAXES AND IMPORTATION

21.1.    Taxes and Importation. All taxes (excluding VAT), stamp duty and other
         duties in accordance with the Government regulations shall be the
         responsibility of the CONTRACTOR Any withholding tax shall be deducted
         directly by TELKOM from the payment to be made to CONTRACTOR in
         accordance with the prevailing laws which is applicable to this
         AGREEMENT. VAT and other related taxes shall be settled with the
         Government directly by TELKOM.

         Upon settlement of VAT and other related taxes between TELKOM and the
         Government, TELKOM will submit original receipts of settlement to
         CONTRACTOR, to enable CONTRACTOR to refund the VAT and other related
         taxes.

21.2.    Importer. All the EQUIPMENT (both hardware and software) imported based
         upon this AGREEMENT shall be conducted under DDP (Delivered Duty Paid)
         as referred to in Incoterm 2000. Therefore, it is agreed by the Parties
         hereto that: (i) the Party who acts as the importer shall be
         CONTRACTOR; and (ii) CONTRACTOR shall use its Import Licence or
         (Agent's) Master List in conducting custom clearance of the EQUIPMENT
         from Custom Authority.

21.3.    Additional devices. In the event CONTRACTOR shall require additional
         devices, apparatus or any other tools in carrying out the WORKS which
         shall be obtained by means of importing them from abroad, then all
         costs, taxes, retribution and

                                       30

<PAGE>

         any other levies thereof shall become the responsibility of CONTRACTOR.

21.4.    CONTRACTOR, shall be responsible at its own cost, for obtaining in a
         timely fashion all necessary export permits, licenses and approvals
         from the country of origin and any intermediate locations, including
         the payment of any and all levies for freight handling and other costs
         related to such permits, licenses and approvals.

21.5.    Irregularities to importation procedures. CONTRACTOR shall be fully
         responsible for the occurrence of irregularities to either the delivery
         of EQUIPMENT from country of origin, transport procedures or supporting
         import documents, as set forth in the Presidential Instruction Number 3
         of 1991 dated 25th July 1991 or any replacement regulations thereof, if
         any.

ARTICLE 22
TRANSFER OF TITLE AND RISKS

22.1.    Event of Transfer. Transfer of title and risk from CONTRACTOR to TELKOM
         shall occur for each SUB-SYSTEM when (i) BAC has been issued or deemed
         to have been issued by TELKOM, or (ii) the SYSTEM has been put into
         commercial operation by TELKOM, whichever is the earliest.

22.2.    Remaining CONTRACTOR's responsibilities. Transfer of title as referred
         to in Article 22.1 shall not impair, release or discharge CONTRACTOR's
         risks and responsibilities towards warranty over EQUIPMENT and any
         other materials or towards Minor Remaining Errors in the EQUIPMENT as
         described in Articles 13.7 dan 13.10 of this AGREEMENT until the
         issuance of FINAL BAC.

ARTICLE 23
CONTRACTOR'S RIGHT AND OBLIGATION

         Beside the rights and obligations as stated in other Articles of this
         AGREEMENT, CONTRACTOR shall have the following rights and obligations:

                                       31

<PAGE>

23.1.    CONTRACTOR'S obligations:

         a.   To ensure the good performance of Softswitch System until the
              expiry of WARRANTY PERIOD through repair or replacement as
              necessary.

         b.   To ensure the service quality at least to the minimum requirement
              until the expiry of WARRANTY PERIOD through repair or replacement
              as necessary as staled in this AGREEMENT.

         c.   Completion of the WORKS according to Article 3 of this AGREEMENT
              such that the SYSTEM of Softswitch System is functioning in
              accordance with the Technical Spesification and can be put into
              commercial operation, in accordance to Article 4.1. of this
              AGREEMENT.

23.1.    CONTRACTOR'S right:

         To receive the payment from TELKOM in the due time for the execution of
         AGREEMENT.

ARTICLE 24
TELKOM'S RIGHT AND OBLIGATION

Beside the rights and obligations as stated in other Articles of this AGREEMENT,
TELKOM shall have the following rights and obligations:

24.1.    TELKOM'S obligations:

         a.   To make the payment to CONTRACTOR for the execution of the WORKS
              on schedule based on this AGREEMENT.

         b.   To issue the recommendation needed by CONTRACTOR to proceed with
              the permission as stipulated in Article 5 of this AGREEMENT.

                                       32

<PAGE>

         c.   To provide the LOCATIONS as well as all the necessary
              infrastructure (including but not limited to electricity, water
              supply, air conditioning, security, grounding, fire alarm, fire
              extinguisher, access road) at the LOCATIONS for the installation
              of EQUIPMENT in accordance with implementation schedule and the
              result of Design Review Meeting.

24.2.    TELKOM'S rights:

         a.   To get the system performance of the Sotfswitch System Class-4
              through repair or replacement as necessary until the expiry of the
              WARRANTY PERIOD, as detailed in Appendix 5.

         b.   To get the service quality at least to the minimum requirement
              through repair or replacement as necessary until the expiry of the
              WARRANTY PERIOD, as stated in this AGREEMENT.

CHAPTER 4
TERMS AND CONDITIONS OF FINANCE

ARTICLE 25
PAYMENT'S TERMS AND CONDITIONS

25.1.    The Terms and Condition of this WORKS based on this AGREEMENT will be
         made by TELKOM to CONTRACTOR as follows:

         The implementation of the Project is subject to an arrangement of Buy
         or Return Basis with the following conditions:

         TELKOM will make fully payment to CONTRACTOR with the following
         conditions:

         1)   Payment Buy or Return System will be made after the BAC issued by
              TELKOM indicating that the

                                             33

<PAGE>

              SYSTEM has successful and can properly technical and commercial
              operation.

         2)   Contractor has submitted completed and valid invoice in 3 (three)
              original copies to TELKOM accompined with following document:

              -   Original BAC;

              -   Original Insurance Polis;

              -   Original Warranty Bond;

              -   Tax invoice (SSP/Surat Setoran Pajak) and Tax Factur following
                  the applicable Indonesian regulation.

              -   Simple Receipt (Kwitansi)

25.2.    Period of Payment

         Each of payment shall be made within twenty one (21) calendar days
         after receipt of complete and correct documents by TELKOM.

         If TELKOM delay to make such payment, TELKOM will be imposed the
         liquidated damage of such delayed with the Government Bank's deposit
         interest rate per day of delayed invoicing's value and shall be paid
         together with the such payment under this Article.

25.3.    Address of invoicing.

         Any invoices and related documents under this AGREEMENT shall be
         submitted to the following addresses:

         To: TELKOM

         PT Telekomuniukasi Indonesia,Tbk
         Att. Senior Manager Shared Services
         DIVISI TELKOM LONG DISTANCE
         Jalan Japati No.1, 2nd Floor
         Bandung 40133

25.4.    Completeness and Correctness

         Documents shall be correct and complete, when fulfil the criteria as
         stated in the "Required Document Verification for Procurement of
         Softswitch System Class-4" according to Article 25.1. of this
         AGREEMENT.

                                       34
<PAGE>

25.5.    The payment shall be made by TELKOM to CONTRACTOR though direct
         transfer which to be addressed to:

          Bank            : FINCONESIA
          Address         : Sentral Senayan I, Lt 6
                            Jl. Asia Afrika No. 8
                            Jakarta 10270

         For USD Portion:

         Account No.     : CM 052 GRBU
         For IDR Portion :

         Account No.     : CM 052 GRBR

         Both in favour of Olex Cables Indonesia The transfer fee shall be
         responsibility of CONTRACTOR.

ARTICLE 26
PERFORMANCE AND WARRANTY BONDS

26.1     The Performance Bond and Warranty Bond shall be in form of Surety Bond
         / Quarantee Bank issued by Insurance Company / Bank according to
         applicable internal TELKOM policy and accepted by TELKOM amounting to 5
         % (five percent) of the total CONTRACT VALUE as stated in Article 19,
         which shall USD 202,525.50 (Two hundred two thousand five hundred
         twenty five US Dollar and fifty cents) Rp. 122.859.572,95 (One hundred
         twenty two million eight hundred fifty nine thousand five hundred
         seventy two Rupiah and ninty five cents).

         The Performance bond shall be valid from the Effective Date of Contract
         until the last BAC while the Warranty Bonds shall be valid from the
         last BAC up to the last FINAL BAG.

26.2     The Performance Bond shall be submitted by CONTRACTOR to TELKOM within
         14 (fourteen) days from signing of this AGREEMENT while the Warranty
         Bond shall be submitted on the last BAC. Both of the bonds submitted
         to:

                                         35

<PAGE>
         PT Telekomunikasi Indonesia, Tbk.
         Att. Senior Manager Shared Services
         DIVISI JSITELKOM LONG DISTANCE
         Jalan Japati No. 1,2nd Floor
         Bandung 40133

26.3     In case either the combined Performance and Bond expires before the
         WORKS is completed, CONTRACTOR shall extend the validity of the bonds
         at the latest within fourteen (14) calendar days before its expiration
         and submit it to:

         PT Telekomunikasi Indonesia, Tbk
         Att. Senior Manager Shared Services
         DIVISI TELKOM LONG DISTANCE
         Jalan Japati No. 1,2nd Floor
         Bandung 40133

26.4     The Performance Bond as stipulated in Article 26.1. shall be released
         to CONTRACTOR upon submission of the last BAC. The Warranty Bond as
         stipulated in Article 26.1 shall be released to CONTRACTOR upon
         submission of the FINAL BAC.

26.5     In the event CONTRACTOR fails to accomplish the WORKS or its parts in
         accordance with the terms and conditions of this AGREEMENT, due to
         gross negligence and/or willful misconduct of CONTRACTOR, then
         CONTRACTOR and TELKOM shall meet to review the situatation. If no
         mutual agreement reached, then TELKOM is entitled to forfeit the
         Performance/ Warranty Bond without any written consent from CONTRACTOR
         and become to property of TELKOM.

26.6.    The release of Peformance Bond as described in Article 26.6. above, no
         waive of CONTRACTOR's obligation as described in Articles 5.5. and 5.6
         of this Agreement.

                                            36

<PAGE>

CHAPTER 5
TERMS AND CONDITIONS OF CONSORTIUM ORGANIZATIONAL

ARTICLE 27
CONSORTIUM ORGANIZATION CRITERIA

27.1     The Consortium of which CONTRACTOR is a part shall have at least one
         (1) Indonesian member.

27.2     The Consortium leader shall be required to be the leading technology
         supplier for pembuat Softswitch System Class-4.

27.3     All substitutions, replacements or other changes to the composition of
         the membership of CONTRACTOR's Consortium must be submitted to and
         approved by TELKOM in writing.

ARTICLE 28
ASSIGNMENT AND SUB-CONTRACTING

28.1.    CONTRACTOR shall not, without the prior written consent of TELKOM,
         assign this Agreement, or assign or encumber any of the moneys due or
         becoming due under it. TELKOM reserves the right to assign this
         Agreement, without prior approval of CONTRACTOR to an Investor provided
         the Investor gives CONTRACTOR satisfactory payment assurances in
         accordance to this AGREEMENT.

28.2.    TELKOM reserves the right to assign this Agreement, with the prior
         approval of CONTRACTOR which such approval shall not be unreasonably
         withheld, to any of TELKOM's subsidiaries or related companies.

28.3.    A schedule of each proposed sub-contractor and the part of the Scope of
         Work proposed to be performed by such sub-contractor will be submitted
         on DRM session. In case of any plan to change

                                          37

<PAGE>

         and/or to add a sub-contractor, CONTRACTOR shall notify TELKOM in
         writing immediately before the proposed sub-contractor is appointed.
         TELKOM shall advise within seven (7) Business Days if it has
         substantive objections to the appointment of any of such proposed
         sub-contractors and/or the work they were intended to do, and
         CONTRACTOR shall take such objections into account so as to meet with
         TELKOM's approval.

28.4.    The use of sub-contractors shall in no way relieve CONTRACTOR from its
         responsibility to deliver the Deliverables to TELKOM (in particular to
         ensure that any Deliverables comply with all requirements of this
         AGREEMENT) or to perform necessary tasks such as project management.

28.5.    CONTRACTOR shall ensure that the addition or removal of any
         sub-contractors shall not impact the agreed Contract Value or
         implementation of the Scope of Work.

ARTICLE 29
INVOLVEMENT OF LOCAL ENTITIES

29.1.    CONTRACTOR shall use all reasonable efforts to maximize involvement of
         entities in Indonesia in its provision of Deliverables, the objective
         being to maximize financial benefits as well as transfer of knowledge
         and learning in Indonesia and thereby reduce TELKOM's exposure to
         foreign exchange risk.

29.2.    The undertaking required by TELKOM shall state that CONTRACTOR will,
         over the duration of the Project, procure certain materials and
         services within Indonesia (stating all categories of materials and
         services) to support the local operations of the overseas companies in
         the Consortium. Further, that all such procurements will be in
         accordance with this AGREEMENT.

                                         38

<PAGE>

ARTICLE 30
LOGISTICS

30.1.    CONTRACTOR shall provide all logistical requirements from the point of
         origin of the any equipment, components or other Project goods to the
         applicable Project Location/Site, including of all charges, such as
         transport and transit, demurrage, storage, insurance, fees, levies,
         taxes, etc.

30.2.    CONTRACTOR shall provide all arrangements for shipping/ transportation,
         forwarding and servicing equipment, components or other Project goods
         from point of origin to the Project Location/Site where they are
         finally deployed.

30.3.    CONTRACTOR shall provide all warehousing requirements if needed and
         explain the locations of the facilities to be used for this purpose.
         CONTRACTOR will also be required to arrange for warehousing and storage
         facilities at installation sites to ensure proper storage and
         protection of all equipment, components or other Project goods.
         CONTRACTOR shall ensure all equipment is adequately packaged and stored
         to avoid any damage. While in such warehousing, the equipment and
         material shall be the sole responsibility of CONTRACTOR.

30.4.    CONTRACTOR shall provide all required protection, insurance and other
         services to ensure safe delivery of the all equipment, components or
         other Project goods. CONTRACTOR shall be responsible for any damage or
         loss of goods.

ARTICLE 31
INVENTORY

31.1.    CONTRACTOR shall provide all services to ensure proper installation of
         equipment, components or other goods according to this AGREEMENT,
         provide optimal operating conditions

                                       39

<PAGE>

         CONTRACTOR shall provide all tools and equipment necessary to install
         and commission any Project equipment procured under this AGREEMENT.

31.2     Provision of materials, labor, equipment, tools and machinery for
         installation shall consist of the following activities:

         a.   CONTRACTOR's contractor shall provide all materials (including
              cables, connectors and other miscellaneous materials), labor,
              tools, transportation, telecommunication facilities (telephone,
              facsimile, etc.) and everything else necessary for completion of
              work in accordance with this AGREEMENT;

         b.   CONTRACTOR's contractor shall employ an adequate supervisory force
              and an adequate staff of experienced technicians and workmen to
              complete the Scope of Work in a satisfactory and workman like
              manner within the time as mentioned in this AGREEMENT.

31.3     CONTRACTOR and its sub-contractors provide all equipment, tools,
         measuring equipment, machinery and electrical power equipment necessary
         for execution of the Scope of Work in Indonesia; and

31.4     Delivery arid storage of Project equipment and materials shall consist
         of the following activities:

         a.   CONTRACTOR and its sub-contractors shall be responsible for
              storage arrangements during the interval from the delivery of
              equipment until it is required for installation;

         b.   CONTRACTOR and its sub-contractors shall be responsible for
              loading and unloading as well as handling of any equipment and
              materials at all stages up to Commissioning;

                                         40

<PAGE>

         c.   CONTRACTOR and its sub-contractors shall also be responsible for
              unpacking (and repacking where necessary), identification and
              checking of materials and relevant invoices or other documents;
              and

         d.   CONTRACTOR and its sub-contractors shall be responsible for
              handling and storage of any goods during transportation and at the
              site.

ARTICLE 32
COMPLIANCE WITH ENVIRONMENTAL STANDARDS

32.1.    The Deliverables supplied by CONTRACTOR shall comply with all
         applicable legal requirements and shall not contain any legally
         prohibited substances and/or preparations. The Deliverables shall not
         contain any substances and/or preparations that cannot be processed by
         means of a normal waste processing method.

32.2.    CONTRACTOR shall allow TELKOM to examine its degree of environmental
         care and provide reasonable assistance to TELKOM in examining that of
         the manufacturers concerned.

32.3.    CONTRACTOR shall provide TELKOM with the information early enough to
         give TELKOM reasonable time to pass it on to all Parties involved
         before Deliverables are received:

         a.   Such substances and/or preparations present in the equipment are
              harmful to people, property or the environment, including soil,
              water and air;

         b.   Such substances and/or preparations are located in the equipment
              and the components concerned shall be treated at the end of their
              useful life and at the end of the useful life of the equipment,
              and how such components can be

                                          41

<PAGE>

              removed from the equipment safely and correctly;

         c.   Regulations are applicable to the transport, storage,
              installation, use, dismantling and processing of the substance in
              connection with the harm it is capable of causing; and

         d.   To improve the information distribution /acquisition process at
              and by TELKOM to a reasonable extent without its costs.

32.4.    CONTRACTOR shall state which components of the equipment are suitable
         for re-use or recycling other than by incineration at the end of its
         useful life.

32.5.    CONTRACTOR shall provide TELKOM with the above-mentioned information,
         either via an electronic information carrier or electronically in a
         commonly used computer program and in a format requested by TELKOM.

32.6     CONTRACTOR shall warrant all of the information which provided to
         TELKOM is complete and correct to the best of its knowledge.

CHAPTER 6
OTHERS TERMS AND CONDITIONS

ARTICLE 33
DOCUMENTS

33.1.    Notwithstanding any other documents to be provided in other articles of
         this AGREEMENT, CONTRACTOR shall submit five (5) copies of documents
         relating to this AGREEMENT for each SYSTEM, consists of:

         (i)  As-Built Drawing (original, hard copy and soft copy), within two
              (2) month after BAC;

         (ii) Technical documentation of EQUIPMENT as detailed in the Scope of
              Works before the issuance of BAC;

                                            42
<PAGE>

33.2.    CONTRACTOR shall provide an adequate number of handbooks and drawings
         that shall be required to support equipment maintenance, installation,
         and test function. Handbooks and drawings shall include assembly
         drawings, wiring information, schematics, drawings, circuit
         diagrams/descriptions and complete instruction for familiarization,
         installation, operation, theory, maintenance, and parts replacements,
         as well as appropriate system drawings. Instruction handbooks for each
         piece of equipment shall be prepared separately, and submitted to
         TELKOM. Instruction handbooks to be supplied shall include the
         following:

         a.       Installation and system handbooks;

         b.       Equipment handbook including Standard Operating Procedure
                  (SOP) and Standard Maintenance Procedure (SMP);

         c.       Repair handbooks including circuit diagrams;

33.3.    Documents retention. Upon the completion of the WORKS, any drawings and
         documents with respect to the SYSTEM owned by CONTRACTOR related to the
         WORKS shall be kept for the EQUIPMENT-design-lifetime of such SYSTEM.
         This is purportedly to enable CONTRACTOR to supply any parts which need
         replacement and/or expansion of such SYSTEM as agreed by the Parties
         during the EQUIPMENT-design-lifetime of the SYSTEM.

33.4.    Intelectual Property Rights documents. Any intellectual property rights
         with respect to any drawings, specifications and data issued by the
         respective Party hereto in regard of this AGREEMENT shall remain the
         possession of such relevant Parties.

33.5.    Clarification on documents. Any incompleteness, doubts with respect to

                                          43

<PAGE>

         breakdown and/or elaboration contemplated in any documents, which
         constitute parts of this AGREEMENT, shall be presented to TELKOM for a
         clarification.

ARTICLE 34
COSTS FOR SUPERVISION AND HAND OVER

34.1.    TELKOM's responsibilities. TELKOM shall bear all costs incurred in
         connection with its representative in the implementation of
         supervision, ACCEPTANCE TEST and hand over of each SYSTEM as referred
         to this AGREEMENT, save to extent all matters concerning utilities and
         work space in CONTRACTOR's premises which shall become the
         responsibility of CONTRACTOR.

34.2.    CONTRACTOR's responsibilities. CONTRACTOR shall at its own costs,
         provide all equipment and own staff which are required for the
         implementation of test, supervision, and inspection in accordance with
         its requirements until the accomplishment of the BAC.

ARTICLE 35
LIQUIDATED DAMAGES

35.1.    Liquidated Damages Amount. For any delay in the completion of WORKS
         implementation, TELKOM shall be entitled to impose penalty to
         CONTRACTOR amounting to 1 0/00 (one per mil) of Contract Price
         excluding 10% VAT for every day delay up to a maximum of five per cent
         (5%) of the CONTRACT PRICE excluding 10% VAT.

35.2.    The sum or sums of money to be paid under Article 35.1 shall be paid as
         liquidated damages and payable by CONTRACTOR to TELKOM in respect of
         the loss or damages sustained by reason of such delay and any sum of
         money paid shall be TELKOM's sole remedy for the delay for which the
         sums are paid, without prejudice to

                                       44

<PAGE>

         TELKOM's right of termination AGREEMENT under section 39 of this
         AGREEMENT.

35.3.    Time of payment for Liquidated Damage. Liquidated Damage as mentioned
         in Article 35.1, if any, shall be payable by CONTRACTOR to TELKOM no
         later than thirty (30) calendar days upon written notice of the
         imposition of such Liquidated Damages.

35.4.    Payment deduction. In the event CONTRACTOR shall fail to make payment
         on Liquidated Damages referred to above, then TELKOM shall be entitled
         to Liquidated Damages amounts so imposed by means of deducting
         forthwith from payment of AGREEMENT PRICE.

ARTICLE 36
INDEMNIFICATION

36.1.    Without prejudice to any other provisions of this Agreement, CONTRACTOR
         shall indemnify TELKOM and hold TELKOM harmless from all damages, cost
         and expenses arising from any Claims (as defined below), if Claims
         arise:

         a.       as a result of a failure by CONTRACTOR to perform its
                  obligations pursuant to this AGREEMENT or other specific
                  agreement related to this AGREEMENT;

         b.       in connection with the work carried out pursuant to its
                  obligations under this AGREEMENT, unless the occurrence of the
                  damage is not attributable to CONTRACTOR;

         c        in connection with the faulty design of the equipment or any
                  other material or supplies which are supplied by CONTRACTOR;

                                              45

<PAGE>

         d.       in connection with an infringement of any Intellectual
                  Property Rights or industrial property right belonging to a
                  third party in relation to Article 41;

         e.       In connection with any Claims including any fines or other
                  penalties suffered by TELKOM as a result of the violation by
                  CONTRACTOR or any of its employees or agents of any laws or
                  regulations in Indonesia related to Article 47;

         f.       for personal injury to and death of any persons and damage to
                  any property arising out of the performance of this AGREEMENT
                  due to acts or omissions whether negligent or otherwise of
                  CONTRACTOR, its employees, agents or sub-contractors;

         g.       In connection with termination by TELKOM for non-delivery of
                  contracted equipment, components or software.

         Provided that TELKOM:

         1.       Gives CONTRACTOR prompt written notice of such Claim;

         2.       Permits CONTRACTOR to defend or settle the Claim;

         3.       Does not at any time admit liability in respect of the whole
                  or any part of the Claim or agrees to settle or dispose of the
                  Claim; and

         4.       Provides all reasonable assistance to CONTRACTOR in defending
                  or settling the Claim.

38.2.    "Claims" shall mean any demands, claims, actions, liabilities, losses,
         damages awarded by a court or arbitration tribunal against TELKOM,
         costs (including legal

                                       46

<PAGE>

         and other professional costs), penalties and expense incurred by TELKOM
         as a result of a breach by CONTRACTOR or any sub-contractor of any of
         its obligations, representations, undertakings or warranties under this
         AGREEMENT.

ARTICLE 37
REPRESENTATION AND WARRANTY

37.1.    CONTRACTOR warrants that the EQUIPMENT and SYSTEM to be delivered to
         TELKOM are new, shall not contain any refurbish parts, having no hidden
         defect and shall not be originated illegally. CONTRACTOR shall further
         undertake that all EQUIPMENT (both hardware and software) delivered to
         TELKOM under this AGREEMENT shall have EQUIPMENT design-life time of
         product at least ten (10) years as of the date of issuance of BAC, or
         from the time the EQUIPMENT has been used commercially by TELKOM,
         whichever occurs first.

37.2.    Detriment. In the event during WARRANTY PERIOD i.e. twelve (12) months
         as of BAC due to fault in design, negligence of workmanship or other
         similar causes, a detriment or damage to the EQUIPMENT occurs then
         CONTRACTOR shall start the activities to rectify or replace it with the
         replaced or rectified ones at CONTRACTOR'S costs, within fourteen (14)
         calendar days after a written notice has been received by CONTRACTOR
         from TELKOM.

37.3.    Release of obligation. CONTRACTOR shall be fully released from
         obligations to rectify or replace defective material during WARRANTY
         PERIOD, if such detriment or damage is caused by the operation of
         EQUIPMENT which does not follow the procedures determined in the
         operating manuals or any other reasons which CONTRACTOR can proves that
         such

                                          47

<PAGE>

         detriment or damage shall not constitute CONTRACTOR's fault.

37.4.    Transportation costs. All costs for transportation with respect to
         re-export and import, import duties and custom clearance in connection
         with or due to the rectification or replacement of the damaged
         EQUIPMENT during the WARRANTY PERIOD shall become the responsibility of
         CONTRACTOR subject to provisions of Article 17.

37.5.    Maintenance of EQUIPMENT after WARRANTY PERIOD. If, upon the expiry of
         WARRANTY PERIOD of 12 (twelve) months, TELKOM requires maintenance
         assistance for the EQUIPMENT from CONTRACTOR, then CONTRACTOR shall
         agree to carry out such maintenance including replacement of the same
         or comparable spare parts within the EQUIPMENT-design-life time of the
         EQUIPMENT as mentioned in Article 18 with costs thereof as mutually
         agreed.

37.6.    Failure by CONTRACTOR. If CONTRACTOR fails to accomplish the WORKS,
         which is due to CONTRACTOR's default, and after the elapse of the
         agreed implementation schedule, and after the full liquidated damages
         as stipulated in Article 36 is applied, CONTRACTOR shall be given a
         reasonable time, which shall be mutually agreed upon, to complete the
         WORKS. If CONTRACTOR still fails to complete the WORKS after such
         period, then Articles 5.4., 5.5. and 5.6. of this Agreement shall aplly
         to CONTRACTOR.

37.7.    Undertaking by CONTRACTOR. CONTRACTOR undertakes that all EQUIPMENT,
         supplied to TELKOM and the execution of the WORKS in accordance with
         this AGREEMENT and shall meet the state of the art technology, owned by
         CONTRACTOR or licence to him as agreed upon in the Scope of Work at the
         date of entering into this AGREEMENT.

                                          48

<PAGE>

ARTICLE 38
TRAINING, TRANSFER OF KNOW HOW AND DEVELOPMENT OF INTELLECTUAL PROPERTY

38.1     CONTRACTOR shall provide training to TELKOM employees and TELKOM shall
         provide qualified employees for training programs provided by
         CONTRACTOR under this Agreement.

38.2     Training shall be conducted both domestic and overseas according to
         implementation schedules as specified in Appendix 2 of this Agreement.

38.3.    The Syllabus of Training as specified in Appendices 10 of this
         AGREEMENT.

38.4.    The execution of Training by CONTRACTOR shall cooperate with TELKOM's
         Directorate of HRD and Business Support cq. TELKOM's Training Centre
         Unit.

ARTICLE 39
TERMINATION OF AGREEMENT

39.1.    CONTRACTOR's Default. CONTRACTOR shall be deemed to be in default if:

         a.       CONTRACTOR is not materially executing the WORKS in accordance
                  with this AGREEMENT or is neglecting to perform his
                  obligations thereunder so as to seriously affect the carrying
                  out of the WORKS and fails to remedy the deficiencies, or

         b.       CONTRACTOR becomes subject to bankruptcy, insolvency,
                  liquidation or winding-up proceedings in any jurisdiction, or
                  is otherwise insolvent or unable to pay its debts, or if a
                  receiver is appointed over or steps are taken to enforce any
                  security Interest against the whole or a part of its assets;
                  or

         c.       CONTRACTOR is in material breach

                                          49

<PAGE>

                  of its obligations as stipulated under this AGREEMENT; or

         d.       CONTRACTOR repudiates this AGREEMENT

         e.       If this Project is failed during acceptance test as described
                  in Article 5.4. of this Agreement that TELKOM will not pay
                  averything to CONTRACTOR.

         f.       If the Project is failure during acceptance test as described
                  in Article 5.4. then CONTRACTOR shall indemnify TELKOM as
                  specified in Article 5.6. of this Agreement.

39.2.    TELKOM shall then immediately dispatch default notice to CONTRACTOR.
         CONTRACTOR shall then take a reasonable action to remedy its default
         and send to TELKOM a redemption plan, which describes CONTRACTOR's
         recovery schedule.

39.3.    If within thirty (30) days after the date of notice, CONTRACTOR does
         not show its intention to remedy the default, TELKOM shall without
         prejudice to any other right CONTRACTOR may have, terminate this
         AGREEMENT by issuing a written termination notice thirty (30) days
         prior to the termination.

39.4.    Upon termination of this AGREEMENT notice by TELKOM, CONTRACTOR shall
         complete the SUB-SYSTEMS which already under construction, which will
         then be accepted and paid according to the AGREEMENT.

39.5.    TELKOM's Default. TELKOM shall be deemed to be in default if.

         a.       being in bankruptcy, insolvency, liquidation or winding-up

                                          50

<PAGE>

                  proceedings in any jurisdiction, or is otherwise insolvent or
                  unable to pay its debts, or if a receiver is appointed over or
                  steps are taken to enforce any security interest against the
                  whole or a part of its assets; or

         b.       fails to meet its contractual obligations, or

         c.       fails to make its payment obligation within twenty one (21)
                  calendar days after the first delay occurs;

39.6.    In the event TELKOM commits such default, CONTRACTOR shall, as soon as
         possible, give notice to TELKOM which specifies the default. TELKOM
         shall within thirty (30) days after the date of such notice diligently
         pursue to remedy such default.

39.7.    If within thirty (30) days after the date of notice, TELKOM does not
         show its intention to remedy the default, CONTRACTOR shall have the
         right to terminate the AGREEMENT.

39.8.    Upon termination of this AGREEMENT under Article 39.7 TELKOM will pay:

         a.       any EQUIPMENT already delivered and/or installed according to
                  Bill-of-Lading or similar/comparable documents; and

         b.       any Services according to As-Built Survey; and

         c.       any materials which are under progress of manufacturing,
                  transport or other means and which are included in the
                  Progress Report upon delivery to TELKOM's premises;

         d.       Any reasonable expenses for demobilization according to
                  Cost-Report provided by CONTRACTOR upon presentation of
                  Cost-Report.

         Documents under Article 39.8.a automatically accepted.

                                          51

<PAGE>

         Documents under Article 39.8. b to d above shall be submitted to TELKOM
         by CONTRACTOR.

         TELKOM shall respond these documents within ten (10) working days as of
         receipt of such documents.

         If TELKOM does not respond within such 10 days, then the documents will
         be deemed as accepted.

         Settlement shall be reached within 60 days. After such 60 days, the
         matter shall be taken to BANI as mentioned in Article 48.

39.9.    Payment under Article 39.8 shall be effected no later than twenty-one
         (21) days after presentation of the documents. Letter of Termination of
         the AGREEMENT together with the above mentioned documents will replace
         all other documents required for receiving payment.

ARTICLE 40
LIABILITY

40.1.    CONTRACTOR's liability. CONTRACTOR shall, at its own costs, take all
         reasonable precautions to prevent any loss or damage to person and
         property of TELKOM. CONTRACTOR shall be fully liable for losses and
         claims, which arise in connection with wilful misconduct or gross
         negligence of CONTRACTOR or its personnels, labors or servants.

40.2.    Damage to the equipment. In the event any damage to the equipments
         belonging to TELKOM during the execution of the WORKS, due to willful
         misconduct or gross negligence of CONTRACTOR or its personnel or its
         labors or its subordinates, then a protocol shall be made in writing
         and to be signed by CONTRACTOR's officer and the supervisor from TELKOM
         which are appointed to supervise the WORKS. All damages or direct
         losses or consequential losses referred to in this Article shall be

                                          52

<PAGE>

         the fully responsibility of CONTRACTOR.

40.3.    loss or damage caused by the gross negligence or willful act, fault or
         omission of CONTRACTOR, its employees, agents or sub-contractors,
         including any damage or interruption to TELKOM's existing Network
         during the migration to the new network to be provided by CONTRACTOR;
         or

40.4.    Unless otherwise provided for by mandatory applicable law, the rights
         and remedies as mentioned in this AGREEMENT are exclusive, and the
         parties accept these remedies in lieu of any and all other rights and
         remedies available at law or otherwise, in contract or in tort, for any
         and all claims of any nature arising out of or in connection with this
         AGREEMENT or any other agreement regarding its performance.

ARTICLE 41
INTELLECTUAL PROPERTY RIGHTS

41.1.    Intellectual Property Rights. The AGREEMENT PRICE as mentioned in this
         AGREEMENT already covers the amount to be paid for the right to use for
         the EQUIPMENT. CONTRACTOR will use its best endeavors to undertake that
         the use of all EQUIPMENT and apparatus thereof by TELKOM will not
         infringe any intellectual property rights (IPR) of any third party. The
         term "IPR" shall include patent, mark, industrial design, copyrights
         and neighboring rights. TELKOM shall inform CONTRACTOR promptly of any
         third party's claim regarding IPR.

41.2.    Third Party claim. In the event any legal claims or any other legal
         actions against TELKOM in connection with the use of such patent and/or
         third party intelectual property rights, as mentioned in Article

                                          53

<PAGE>

         41.1 CONTRACTOR shall indemnify and hold TELKOM harmless for any legal
         claims, whether in courts or any other forum, and CONTRACTOR shall
         settle such legal claims at his own costs.

41.3.    In the event of any allegation of infringement of any third party's IPR
         which is subject to indemnification as mentioned in Article 41.2.
         CONTRACTOR shall use its commercially reasonable efforts at its option,
         (i) to obtain a licence from the third party; (ii) to defend against
         such allegation through final judgement and all timely fields appeal;
         (iii) to redesign the allegedly infringing products in order to avoid
         infringement.

41.4.    The above Art. 41.3 states the sole and entire obligation of CONTRACTOR
         with respect to any claim regarding the IPR of any third party.

41.5.    CONTRACTOR will have no obligation with respect to any claim or action
         pursuant to this article unless: (i) CONTRACTOR is promptly notified in
         writing of such third party claim by TELKOM, within maximum ten (10)
         calendar days after TELKOM receive written notification/ claim from
         such third party; and (ii) TELKOM allows CONTRACTOR sole control of the
         defence and settlement of such third party claims and (iii) TELKOM
         provides CONTRACTOR with reasonable assistance, at CONTRACTOR's
         expense, in connection with the settlement and defence of such third
         party's claims. Notwithstanding the above, TELKOM shall have the right,
         to employ counsel to participate in any such defense at TELKOM's
         expense.

41.6.    CONTRACTOR shall have no liability for any claim of the nature referred
         to in this Article based upon: (i) use of the

                                          54

<PAGE>

         products in a manner other than for which it was intended; (ii)
         unauthorised modification or changes made to the products; (iii)
         operation of the products in combination with products not supplied by
         CONTRACTOR; or (iv) CONTRACTOR's compliance with TELKOM's designated
         designs, material usage or specifications furnished by TELKOM, in which
         case TELKOM shall defend, indemnify and hold CONTRACTOR harmless
         against any claim of infringement of any such IPR.

ARTICLE 42
RIGHT OF USE FOR SOFTWARE

42.1.    CONTRACTOR hereby grants to TELKOM subject to the terms and conditions
         of this AGREEMENT a nonexclusive, non-transferable license to use the
         Licensed Software on the Hardware and the Software Documentation for
         the TELKOM's internal purposes.

         Without limiting the foregoing, the license does in particular not
         include the light to modify, copy (other than as mentioned per
         paragraph 2 below), port, translate or sublicense the Licensed Software
         and the Software Documentation.

42.2.    TELKOM shall be entitled to produce one (1) back-up copy of each item
         of the Licensed Software, whereby the use of such back-up copy shall be
         limited to replace the original Licensed Software if the original
         Licensed Software is inoperable. TELKOM shall keep records about the
         storage of such back-up copies and present such the records to
         CONTRACTOR on demand.

42.3.    Certain programs of the Licensed Software and/or the Software
         Documentation may be proprietary to third party licensors of CONTRACTOR

                                          55

<PAGE>

         who may be direct and intended third party beneficiaries of certain
         terms and conditions herein relating to the protection of such third
         party proprietary Software. TELKOM agrees those third party
         beneficiaries may enforce these terms and conditions directly against
         TELKOM.

42.4.    The Licensed Software may contain freeware or shareware obtained by
         CONTRACTOR from a third party source. No license fee has been paid by
         CONTRACTOR for the inclusion of any such freeware or shareware, and no
         license fee is charged to TELKOM for its use. TELKOM acknowledges and
         agrees that CONTRACTOR provides no warranties and shall have no
         liability whatsoever in respect of TELKOM's possession and/or use of
         the freeware or shareware.

ARTICLE 43
SPECIFIC CONDITIONS

43.1.    Confidentiality on INFORMATION. The Parties agree to perform their best
         efforts in keeping confidentiality on INFORMATION with respect to this
         AGREEMENT and The Parties shall ensure its directors, employees,
         agents, or servants shall not disclose information, data, documentation
         and knowledge to third parties without written approval from the other
         party, nor shall produce information, data, documentation and knowledge
         in the form of paper, cassettes, diskettes, discs or any other forms,
         save to extent that such action is performed as a report to the
         relevant Governmental agencies as required by the laws.

43.2.    Exceptions of INFORMATION. The provision as mentioned in Article 43.1
         above shall not apply in the event such INFORMATION has become public

                                          56

<PAGE>

         domain or upon the expiry of 10-year period as of the signature of this
         AGREEMENT.

ARTICLE 44
WORKS VARIATION

44.1.    Changes to the scope of Works. The Scope of Work shall be adjusted and
         executed (i) under an Amendment to this AGREEMENT after the detailed
         survey, design and engineering is completed and approved by TELKOM, and
         (ii) after the final As-Built Bill of Quantity is completed and
         approved by TELKOM.

44.2.    Upon mutual agreement between the Parties, TELKOM may alter the Scope
         of Works, Drawing, specification design, place or time of delivery,
         addition or reduction of WORKS. Changes of WORKS, can be conducted
         prior to or at the commencement of the WORKS under an implementation
         schedule, feasibility and possible Agreement Price variation as
         mutually agreed upon by Parties.

44.3.    Cost addition/reduction. If such alteration shall cause cost addition
         or reduction and/or changes of completion period of WORKS, then an
         adjustment shall be made to the AGREEMENT Price and/or completion
         period of WORKS based upon mutual agreement of the Parties;

44.4.    Agreement variation. Any variations to the content of this AGREEMENT,
         whether with respect to Scope of Works, Agreement Price, Period or any
         other parts of this AGREEMENT shall bind TELKOM and CONTRACTOR if it
         expressly made in writing and agreed by TELKOM and CONTRACTOR by
         providing and signing an amendment to this AGREEMENT.

44.5.    Unit Price. The agreed unit prices for variations to the Scope of Work
         being performed under this AGREEMENT shall be the same as the unit
         prices detailed in this AGREEMENT until FINAL BAC.

                                          57

<PAGE>

         This does not include free of charge items as applicable or if no unit
         price is given.

ARTICLE 45
NATIONAL REGULATIONS

CONTRACTOR shall obey all prevailing regulations and governmental policies in
Indonesia whether those have been expressly provided in the provisions of laws
or not.

ARTICLE 46
FORCE MAJEURE

46.1.    Definition of Force Majeure. Force Majeure shall mean events or
         circumstances which occur beyond reasonable control of the Parties
         hereto which cause the stoppage or prevention of the implementation of
         AGREEMENT such as earthquake, flood, landslides, typhoon, fires,
         explosion, sabotage, riots, disturbances, military actions, strikes,
         changes in law, orders or regulations of public authorities.

46.2.    Notices. Any event which categorized as Force Majeure shall be informed
         to the other Party within fourteen (14) calendar days at the latest
         upon such occurrence. If such period is exceeded, the other Party is
         entitled to refuse such Force Majeure as the reasons of the delay or
         the failure to perform such party's obligation.

46.3.    Delays due to Force Majeure. If, due to Force Majeure, the
         implementation of manufacturing, delivery, construction, installation,
         training, ACCEPTANCE TEST or any other program shall be temporarily
         prevented, then the period of program implementation so prevented shall
         be revised by extending the implementation period of the affected
         activity/program. If this shall affect the completion period as
         mentioned in this AGREEMENT, then Parties shall agree to extend the
         completion period of the WORKS with the number of days at least

                                          58

<PAGE>

         equal to the prevention of the program implementation mentioned above
         plus a reasonable time necessary to re-mobilise and to cover the impact
         of the Force Majeure (e.g. bad weather).

46.4.    Changes to AGREEMENT PRICE. The extension period of program
         implementation or completion period of the WORKS in connection with the
         Force Majeure event as mentioned in Article 46.1 shall not cause the
         increase of AGREEMENT PRICE.

46.5.    Liability in the event of Force Majeure. All damages in connection with
         the occurrence of Force Majeure shall become the responsibility of the
         respective Party hereto.

46.6.    if the WORKS are suspended, due to the occurrence of Force Majeure, for
         more than six (6) months in the aggregate, by giving 30 day prior
         notice, either Party shall have the right to terminate this AGREEMENT
         and TELKOM shall pay CONTRACTOR for all WORKS carried out until the
         occurrence of Force Majeure, excluding any EQUIPMENT which is still
         originally packed and located at TELKOM's LOCATIONS.

46.7.    For the avoidance of doubt, in the event of termination due to Force
         Majeure, TELKOM shall pay for the followings against supporting
         documents:

         (i) EQUIPMENT already on site;

         (ii) Services already performed;

46.8.    Such termination shall not omit the rights and obligations of the
         Parties which have occurred before such Force Majeure event.

ARTICLE 47
APPLICABLE LAW

This AGREEMENT construed and under perception of law of the Republik of
Indonesia.

                                 59

<PAGE>

ARTICLE 48
SETTLEMENT OF DISPUTES

48.1.    Amicable settlement. Any discrepancies or disputes arising between
         TELKOM and CONTRACTOR with respect to the execution of this AGREEMENT
         or all matters in connection with the implementation of this AGREEMENT
         or all related mailers thereof shall be settled amicably between
         Parties based upon good faith.

48.2.    BANI. In the event that such disputes cannot be settled amicably within
         sixty (60) days, then the dispute shall be submitted to the Indonesian
         National Board of Arbitration (or "BANI") in Jakarta in accordance with
         rules and procedures of BANI. The governing law shall be the Indonesian
         law, while the proceeding language shall be in Bahasa Indonesia.

48.3.    Nature of BANI decision. The Parlies hereto agree decision of BANI
         shall be final and binding upon them and therefore no other legal
         appeal may be permitted to any court of competence. Upon decision of
         BANI aforesaid, all terms and conditions of this AGREEMENT shall remain
         valid and the respective Parties' obligations shall be completed until
         such dispute is declared to be settled.

ARTICLE 49
CORRESPONDENCES

All correspondences in connection with the implementation of this AGREEMENT
shall be made in Indonesian or English and addressed to:

FOR TELKOM:

1. Head of Long Distance Division
   PT.TELEKOMUNIKASI INDONESIA, Tbk.
   TELKOM Building 2nd Floor
   Jl. Japati No.1
   Bandung 40133 - INDONESIA
   Phone 022-4522317
   Fax   022-4522321

                                60

<PAGE>

2. Head of TELKOM Construction Centre
   PT.TELEKOMUNIKASI INDONESIA, Tbk.
   TELKOM Building 2nd Floor
   Jl.Japati No.1
   Bandung 40133 - INDONESIA
   Phone 022-4526417
   Fax   022-7206530

FOR CONTRACTOR:

   Project Manager - Softswitch
   Consortium Santera-Olex
   Wisma Bisnis Indonesia Lt.15
   Jl. S Parman Kav.12,Jakarta 11480
   Phone 021 535 7443
   Fax   021 535 7243
   Att. Mr. Rudy Widjanarso

ARTICLE 50
MISCELLANEOUS

50.1.    Headings. All headings of the articles set forth in this AGREEMENT
         shall only be for convenience and therefore it shall not alter, add or
         affect certain meaning in the interpretation of this AGREEMENT.

50.2.    Languages. This AGREEMENT is provided in two (2) languages being
         Indonesian and English languages each of which shall have the same
         meaning, provided that in the event of discrepancy between them, then
         Indonesian language version shall prevail.

50.3.    CONTRACTOR shall make by its own costs twenty five (25) copies of this
         AGREEMENT to be delivered to TELKOM for the control of implementation
         of the AGREEMENT and other related activities.

50.4.    In the event any of the articles of this AGREEMENT is unenforceable,
         then such article shall be deleted and shall be deemed to be of no
         force or effect. The Parties shall, to the extent possible, negotiate
         in good faith to agree upon an enforceable provision having a
         materially similar effect, and this AGREEMENT shall be amended
         accordingly.

                                          61

<PAGE>

50.5.    In the implementation of this Agreement the parties shall consider
         business ethics as a public ethics to success and result of deployment
         quality. Violation of such business ethics as attached in Appendix 15
         of this Agreement cause of be canceled or be terminated this Agreement
         without any claim by CONTRACTOR to TELKOM.

ARTICLE 51
EFFECTIVE DATE OF CONTRACT (EDC)

This AGREEMENT shall be effective from the date signing of this AGREEMENT by
duly authorized Representatives of the Parties.

IN WITHNESS WHEREOF, this AGREEMENT is made in two (2) original and executed in
Jakarta by duly representatives of the Parties hereto in view of prevailing
laws, bearing sufficient stamp duties, each of which shall be binding and having
the same legal power.

                           Signed by:

                           For and on behalf of:

         TELKOM                                           CONTRACTOR
                                               PT.OLEX CABLES INDONESIA (LEADER)

                                               [STAMPED]

/s/ AGUS UTOYO                                 /s/FADJAR TJOANDA
--------------                                 -----------------
     AGUS UTOYO                                         FADJAR TJOANDA
   Director of HRD                                    President Director
And Business Support

                                       62

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00060-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00060-of-00352.parquet"}]]