Document:

<PAGE>
                                                                    Exhibit 4.14

                                 LOAN AGREEMENT

                        NO. K.TEL.190/HK810/UTA-00/2003

                                 US$ 123,965,000

                                     between

                         PERUSAHAAN PERSEROAN (PERSERO)

                        PT. TELEKOMUNIKASI INDONESIA, TBK

                                   as Borrower

                                       and

                        THE EXPORT-IMPORT BANK OF KOREA

                                    as Lender

                              Dated August 27, 2003

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
ARTICLE                                                            PAGE
-------                                                            ----
<S>         <C>                                                    <C>
ARTICLE 1   DEFINITIONS AND INTERPRETATION ................          5
ARTICLE 2   THE FACILITY ..................................         10
ARTICLE 3   DISBURSEMENT ..................................         10
ARTICLE 4   INTEREST AND DEFAULT INTEREST .................         13
ARTICLE 5   FEES AND EXPENSES .............................         13
ARTICLE 6   REPAYMENT AND PREPAYMENT ......................         15
ARTICLE 7   PAYMENT AND CURRENCY ..........................         18
ARTICLE 8   CONDITIONS PRECEDENT ..........................         20
ARTICLE 9   REPRESENTATIONS AND WARRANTIES ................         22
ARTICLE 10  COVENANTS .....................................         26
ARTICLE 11  ILLEGALITY ....................................         30
ARTICLE 12  CURRENCY INDEMNITY ............................         30
ARTICLE 13  EVENTS OF DEFAULT .............................         31
ARTICLE 14  GOVERNING LAW AND JURISDICTION ................         35
ARTICLE 15  MISCELLANEOUS .................................         37

< ANNEXES >
ANNEX A     DISBURSEMENT SCHEDULE .........................         41
ANNEX B-1   DISBURSEMENT PROMISSORY NOTE ..................         42
ANNEX B-2   REPAYMENT PROMISSORY NOTE .....................         45
ANNEX C     REQUEST FOR DISBURSEMENT ......................         49
</TABLE>

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<PAGE>

<TABLE>
<S>         <C>                                                    <C>
ANNEX D     CONTENT CERTIFICATE ...........................         51
ANNEX E     NOTICE OF DISBURSEMENT ........................         53
ANNEX F     CERTIFICATE OF AUTHORITY ......................         54
ANNEX G     OPINION OF COUNSEL TO BORROWER ................         55
ANNEX H     ACCEPTANCE LETTER OF PROCESS AGENT ............         58
</TABLE>

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<PAGE>

                                 LOAN AGREEMENT

THIS LOAN AGREEMENT (the "AGREEMENT") dated as of August 27, 2003 is made and
entered into by and between:

PERUSAHAAN PERSEROAN (PERSERO) PT. TELEKOMUNIKASI INDONESIA, TBK. (the
"BORROWER"), a State-owned limited liability public company duly organized and
existing under the laws of the Republic of Indonesia ("INDONESIA") with its
registered head office at Jalan Japati No.1, Bandung 40133, Indonesia; and

THE EXPORT-IMPORT BANK OF KOREA (the "LENDER"), a financial institution duly
organized and existing under the Export-Import Bank of Korea Act of the Republic
of Korea ("KOREA") with its registered head office at 16-1, Yoido-dong,
Youngdungpo-gu, Seoul, Korea.

                                   BACKGROUND

WHEREAS:

(A) the Borrower and Samsung Electronics Co., Ltd (the "SUPPLIER"), a
corporation duly organized and existing under the laws of Korea with its
registered head office at 18th IT Center, , Maeton-3 -dong, Paldal-gu, Suwon-si,
Gyeonggi-do, Korea 442-742, as leader of the Samsung Consortium (as defined in
the Contract), have entered into a contract dated 23 December, 2002 (the
"CONTRACT") providing for the work to be undertaken by Supplier for Package 2 of
the T-21 Program for (i) either the nationwide package of NSS procurement for
TELKOM's Regional Divisions excluding DIVRE III, or (ii) the regional package of
BSS procurement for DIVRE IV, V, VI and VII (the "PROJECT") as specified in the
Contract.

(B) the Borrower, under the Contract, is required to pay to the Supplier the
contract value for execution of the Project (the "CONTRACT VALUE") together with
offshore cost outside Indonesia in the amount of One Hundred Twenty Three
Million Nine Hundred Sixty Five Thousand and Five Hundred Ninety One U.S.
Dollars (US$ 123,965,591) (the "FOREIGN COST") and onshore cost within Indonesia
in the amount of Two Hundred Eighty Six Billion Five Hundred Thirty Seven
Million Three Hundred Sixty Thousand Five Hundred Eighty Six Indonesian Rupiah
(IDR 286,537,360,586) (the "LOCAL COST"),

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and the Borrower is prepared to pay not less than fifteen percent (15%) of the
Foreign Cost to the Supplier as cash payment prior to the Acceptance Date;

(C) the Borrower has requested the Lender to extend a loan to the Borrower to
finance the Borrower's payment to the Supplier up to One Hundred Twenty Three
Million Nine Hundred Sixty Five Thousand U.S. Dollars (US$ 123,965,000) which
means (i) the aggregate amount of eighty five percent (85%) of the Foreign Cost
thereof; and (ii) the Local Cost up to Eighteen Million Five Hundred Ninety Five
Thousand U.S. Dollars (US$ 18,595,000) thereof; and

(D) based on the foregoing and subject to the terms and conditions of the
Agreement, the Lender has agreed to extend to the Borrower and the Borrower has
agreed to accept the loan as described herein.

NOW, THEREFORE, in consideration of the premises and the covenants herein
contained, the Borrower and the Lender agree as follows:

                    ARTICLE 1 DEFINITIONS AND INTERPRETATION

SECTION 1.1 DEFINITIONS

The following terms shall, unless the context otherwise requires, have the
following meanings whenever used in the Agreement including the Recitals above
and the Annexes hereto:

"AGREEMENT", "BORROWER", "CONTRACT", "CONTRACT VALUE", "INDONESIA", "KOREA",
"LENDER", "PROJECT" AND "SUPPLIER" have the meanings assigned to them in the
recitals above, respectively.

"ACCEPTANCE DATE" means the earlier of (i) the date of the Borrower's issuance
of the final Integrated System Acceptance Test Certificate of the Project issued
in accordance with the Contract; and (ii) the date falling thirty-six (36)
months after the execution of the Agreement, or such a later date as may be
agreed upon between the Lender and the

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Borrower.

"AVAILABILITY PERIOD" means the period commencing on the date of the execution
of the Agreement and expiring on the earlier of (i) the date falling one (1)
month after the Acceptance Date or such other date as may be agreed upon between
the Lender and the Borrower, and (ii) the date on which the Facility is
terminated, cancelled, or fully disbursed in accordance with the Agreement.

"BANKING DAY" means a day on which banks are open for business in New York,
United States of America.

"COMMITMENT FEE" means the commitment fee payable by the Borrower to the Lender
in accordance with Section 5.1.

"CONSTRUCTION PERIOD" means the period commencing on the date of the first
Disbursement hereunder and ending on the earlier of (i) the Acceptance Date or
(ii) the last day of the Availability Period.

"CONTENT CERTIFICATE" means a content certificate issued by the Supplier and
submitted by the Borrower in respect of each Disbursement hereunder setting out
the value of the equipment, services or work supplied or performed by the
Supplier for the Project in respect of which such Disbursement is requested and
such certificate shall be substantially in the form and substance attached
hereto as Annex D.

"DEFAULT INTEREST" means the default interest payable by the Borrower to the
Lender in accordance with Section 4.2.

"DISBURSEMENT" means each disbursement of the Facility made in accordance with
the provisions of the Agreement or the principal amount of such disbursement, as
the context may require.

"DISBURSEMENT DATE" means March 30, June 30, September 30 and December 30 in
each year before the Acceptance Date or such other date as may be agreed upon in
writing between the Lender and the Borrower.

"DISBURSEMENT DOCUMENTS" means, with respect to each Disbursement, the copy of

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the commercial invoice, bill of lading, Content Certificate, and other
documents, which the Supplier is required to submit to or receive from the
Borrower in order to obtain payment of all or any portion of the Contract Value
under the Contract.

"DISBURSEMENT SCHEDULE" means the schedule attached hereto as Annex A.

"ESCROW ACCOUNT" means an escrow account no. [to be determined] with the Bank
[to be determined] with its registered office at [to be determined] under the
name of the Borrower, provided that the account shall only be disbursed to the
Supplier based on the Contract between the Borrower and the Supplier.

"EVENT OF DEFAULT" means any of the events specified in Section 13.1.

"EXPOSURE FEE" means the exposure fee payable by the Borrower to the Lender in
accordance with Section 5.2.

"EXTERNAL INDEBTEDNESS" means any Indebtedness which is denominated and payable
or optionally payable in a currency other than the official currency of
Indonesia.

"FACILITY" means the loan facility to be made available in favor of the Borrower
under the Agreement or, where the context so requires, the aggregate amount of
such loan facility specified in Section 2.1.

"FOREIGN COST" means the expenditure (i) primarily for goods and services
purchased outside Republic of Indonesia and incorporated into or used to develop
or construct the Project, and (ii) up to the amount of One Hundred Twenty Three
Million Nine Hundred Sixty Five Thousand and Five Hundred Ninety One U.S.
Dollars (US$ 123,965,591).

"INDEBTEDNESS" means any obligation for the payment or repayment of money,
whether present or future.

"INTEREST PAYMENT DATE" means (i) June 30 and December 30 in each year before
the Acceptance Date; and (ii) each Repayment Date (including the first Repayment
Date).

"INTEREST PERIOD" means the period commencing on the date on which each
Disbursement is made and ending on the date immediately preceding the next
Interest

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Payment Date; and thereafter the period commencing on an Interest Payment Date
and ending on the date immediately preceding the next Interest Payment Date.

"INTEREST RATE" means the interest rate set forth in Section 4.1.

"INTERNATIONAL CAPITAL STANDARD" means international standards for capital
adequacy, including those commonly understood as the Basel Accord and any
similar report, accord, agreement or directive regarding capital adequacy.

"LOCAL COST" means the expenditure (i) for goods and services manufactured
and/or originated in Republic of Indonesia and incorporated into or used to
develop or construct the Project, and (ii) up to the amount of Two Hundred
Eighty Six Billion Five Hundred Thirty Seven Million Three Hundred Sixty
Thousand Five Hundred Eighty Six Indonesian Rupiah (IDR 286,537,360,586).

"LOAN" means the aggregate principal amount of Disbursements from time to time
outstanding.

"MANAGEMENT FEE" means the management fee payable by the Borrower to the Lender
in accordance with the provision of Section 5.3.

"NOTICE OF DISBURSEMENT" means a written notice of the Lender, substantially in
the form of Annex E, to notify the Disbursement made to the Borrower pursuant to
Section 3.6 thereof.

"NOTES" means the notes to be issued by the Borrower in favor of the Lender
pursuant to Section 6.2.

"PERSON" means any individual, corporation, partnership, association, limited
liability company, joint stock company, trust, unincorporated organization,
government, any agency or political subdivision thereof (in each case whether or
not having a separate, legal personality or any two or more of the foregoing).

"REPAYMENT DATE" means each of ten (10) consecutive dates occurring
semi-annually on June 30 and December 30 in each year from and including the
date which shall be six (6) months following the Acceptance Date.

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"REQUEST FOR DISBURSEMENT" means a written request of the Borrower, in the form
of Annex C, to disburse the Facility.

"TAX" means all taxes of every kind, charges (including stamp charges) and
withholdings, levies, imposts, duties, fees, and deductions, which are at the
date of execution of the Agreement or thereafter imposed, levied, collected,
withheld or assessed by any government, subdivision or other taxing jurisdiction
or authority (other than taxing jurisdiction or authority of or in Korea),
together with all interest, additions to tax, penalties and similar add-ons
payable with respect thereto.

"U.S. DOLLARS" or "US$" means the lawful currency of the United States of
America.

SECTION 1.2 INTERPRETATION

(a)   In this Agreement:

(i)   The table of contents and the headings of Articles and Sections are
      inserted for purposes of convenience and reference only and shall have no
      effect on the interpretation of any provision of the Agreement.

(ii)  References to an Article, Section or Annex will be construed as references
      to an Article, Section or Annex of the Agreement.

(iii) References to agreements, contracts or documents are to such agreements,
      contracts or documents as the same may be amended, varied, novated or
      supplemented from time to time.

(iv)  Words indicating the singular will include the plural and vice versa where
      the context requires.

(v)   Reference to a number of days shall refer to a calendar day unless Banking
      Day is otherwise specified.

(b)   The Annexes to the Agreement shall form an integral part hereof.

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<PAGE>

                             ARTICLE 2 THE FACILITY

SECTION 2.1 AMOUNT

The Lender hereby establishes the Facility for the Project, upon and subject to
the terms and conditions set forth in the Agreement, in favour of the Borrower
in the aggregate amount not to exceed One Hundred Twenty Three Million Nine
Hundred Sixty Five Thousand U.S. Dollars (US$ 123,965,000) (the "FACILITY") to
enable the Borrower to make payments for the following:

(i)  Up to Eighty Five percent (85%) of the Foreign Cost which shall be One
     Hundred Five Million Three Hundred Seventy Thousand U.S. Dollars (US$
     105,370,000); and

(ii) the Local Cost up to the amount of Eighteen Million Five Hundred Ninety
     Five Thousand U.S. Dollars (US$ 18,595,000).

SECTION 2.2 PURPOSE

The Borrower agrees and shall ensure that the entire proceeds of the Facility
shall be used exclusively for the purposes referred to in Section 2.1 provided,
however that the Lender is not obliged to monitor or verify the application of
the proceeds of the Facility.

                             ARTICLE 3 DISBURSEMENT

SECTION 3.1 DISBURSEMENT PROCEDURES

Upon satisfaction of all the conditions precedent set forth in Section 8.1 and
Section 8.2, the Facility shall be disbursed by the Lender in accordance with
the disbursement procedures set forth in this Article 3.

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SECTION 3.2 DIRECT PAYMENT PROCEDURE

(a) The Borrower shall from time to time ten (10) Banking Days before the
Disbursement Date request the Lender in writing by sending the Request for
Disbursement to make Disbursements for the due amount under the Contract
directly to the Escrow Account with a commercial bank on the Disbursement Date
in accordance with the provisions set out in the Disbursement Schedule attached
hereto as Annex A.

(b) Each Request for Disbursement under this procedure shall be signed by an
authorized representative of the Borrower and shall be accompanied by the
Disbursement Documents related thereto.

(c) Within ten (10) Banking Days after the receipt by the Lender of the Request
for Disbursement and the Disbursement Documents in form and substance
satisfactory to the Lender and in conformity with the requirements of this
Agreement, the Lender shall pay the requested amount directly to the Escrow
Account, which payment shall constitute a Disbursement hereunder as of the
Disbursement Date and in the amount of such payment.

SECTION 3.3 RELIANCE ON REQUEST FOR DISBURSEMENT AND DISBURSEMENT DOCUMENTS

(a) The Lender shall reasonably and promptly determine the adequacy of the
Request for Disbursement, Disbursement Documents and any other evidence and
information provided under Section 3.2 and shall not be responsible for any
delay in the making available of any Disbursement arising out of any reasonable
request it may make for additional documentation, evidence or information.

(b) The Lender shall be entitled (but not obliged) to rely and act upon any
documentation, evidence or information related to the Request for Disbursement
or the Disbursement Documents, which appears on its face to have been duly
completed notwithstanding that such documentation, evidence or information
proves to be not genuine, not properly signed or otherwise incorrect in any
respect.

(c) Without limiting paragraphs (a) and (b) above, the obligations of the
Borrower under this Agreement will not be affected by:

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(i)   any unenforceability, illegality or invalidity of any obligation of any
      person under the Contract or any Disbursement Document and any other
      documentation, evidence and information;

(ii)  the breach, frustration or non-fulfillment of any provision of, or claim
      arising out of or in connection with the Contract or any Disbursement
      Document and any other documentation, evidence and information; or

(iii) the fact that the amount payable to the Supplier under the Contract is not
      or was not due or payable to the Supplier.

SECTION 3.4 BINDING EFFECT

Each Disbursement of the Loan under Section 3.2 as from the date of such
Disbursement shall constitute a legal, valid and binding obligation upon the
Borrower, repayable in accordance with the terms of this Agreement.

SECTION 3.5 AVAILABILITY

Except as the Lender shall otherwise agree in writing, no Disbursement shall be
made by the Lender after the expiration of the Availability Period.

SECTION 3.6 NOTICE OF DISBURSEMENT

Upon each Disbursement made hereunder, the Lender shall notify the Borrower of
the date and amount of such Disbursement by sending the Notice of Disbursement
to the Borrower. Such notice shall, in the absence of manifest error, be
conclusive evidence as to the date and amount of the Disbursement concerned.

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<PAGE>
                     ARTICLE 4 INTEREST AND DEFAULT INTEREST

SECTION 4.1 INTEREST

The Borrower shall pay to the Lender interest on the outstanding and unpaid
principal amount of the Loan at the rate of three point zero five percent
(3.05%) per annum (the "INTEREST RATE"). Such interest shall be paid in arrears
on each Interest Payment Date for each related Interest Period.

SECTION 4.2 DEFAULT INTEREST

If the Borrower fails to pay any amount, including, but not limited to,
principal, interest, Commitment Fee, Exposure Fee and Management Fee, payable
under the Agreement when due (whether at stated maturity, by acceleration or
otherwise), the Borrower shall pay, whether after or before judgement to the
Lender default interest (the "DEFAULT INTEREST") on such overdue amount, to the
extent permitted by applicable law, at the rate equal to one percent (1%) per
annum above the Interest Rate for each day during the period from and including
the due date thereof to, but excluding, the date of actual payment thereof,
during which period interest provided in Section 4.1 shall not accrue on any
such overdue principal.

SECTION 4.3 COMPUTATION

Interest and Default Interest shall be computed on the basis of the actual
number of days elapsed and a year of 360 days.

                           ARTICLE 5 FEES AND EXPENSES

SECTION 5.1 COMMITMENT FEE

(a) The Borrower shall pay to the Lender a commitment fee (the "COMMITMENT
FEE"),

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payable in arrears on each Interest Payment Date, on the daily uncancelled and
undisbursed portion of the Facility at the rate of zero point three percent
(0.3%) per annum.

(b) Such Commitment Fee shall commence to accrue from and including the earlier
of (i) the date on which first Disbursement is made, and (ii) the date falling
sixty (60) days after the execution of the Agreement to and including the last
day of the Availability Period and shall be computed on the basis of actual
number of days elapsed and a year of 360 days.

(c) The Commitment Fee having been paid shall not be refunded for any reason
whatsoever.

SECTION 5.2 EXPOSURE FEE

(a) The Borrower shall pay to the Lender the Exposure Fee in arrears on each
Interest Payment Date together with interest, in the amount equal to two point
three two nine one percent (2.3291%) per annum of the Loan outstanding.

(b) Such Exposure Fee shall commence to accrue from and including the date of
the Disbursement and shall be computed on the basis of actual number of days
elapsed and a year of 360 days.

(b) The Exposure Fee having been paid shall not be refunded for any reason
whatsoever

SECTION 5.3 MANAGEMENT FEE

(a) The Borrower shall pay to the Lender a management fee (the "MANAGEMENT FEE")
in the amount equal to zero point three percent (0.3%) of the aggregate amount
of the Facility specified in Section 2.1 above within thirty (30) days after the
execution of the Agreement and, at the latest, on or prior to the date of the
initial Disbursement hereunder.

(b) The Management Fee having been paid shall not be refunded for any reason

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whatsoever.

SECTION 5.4 EXPENSES

(a) The Borrower shall, whether any Disbursement is made or not, reimburse the
Lender on demand for all costs, charges and expenses, including, but not limited
to, legal fees and expenses of counsel and all of out of pocket expenses such as
translation, accommodation and travel expenses, incurred by the Lender in
connection with the preparation, negotiation, execution or amendment of the
Agreement, provided, however, that the total costs and expenses reimbursed by
the Borrower under this paragraph (a) shall not exceed Fifty Thousand U.S.
Dollars (US$50,000).

(b) The Borrower shall reimburse the Lender on demand for all costs, charges
and expenses, including, but not limited to, legal fees and expenses of counsel
and all of out of pocket expenses such as translation, accommodation and travel
expenses, incurred by the Lender in (i) demanding, suing for or seeking to
recover any sums due under the Agreement or (ii) enforcing, preserving or
perfecting any right of the Lender under the Agreement from and after the
occurrence of an Event of Default.

(c) The Lender shall provide the Borrower with a reasonably detailed statement
of costs, charges and expenses to be reimbursed by the Borrower. Such statement
shall, in the absence of manifest error, be conclusive evidence as to the amount
to be reimbursed to the Lender.

                       ARTICLE 6 REPAYMENT AND PREPAYMENT

SECTION 6.1 REPAYMENT

The Borrower shall repay the Loan to the Lender in ten (10) equal, consecutive
and semiannual installments on each Repayment Date, provided, however, that the
last installment shall be in the amount necessary to repay the Loan in full then
outstanding.

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SECTION 6.2 NOTES

(a) In order to evidence its obligations to repay the Loan and to pay interest
thereon and Exposure Fee, the Borrower shall, prior to the initial
Disbursement, issue and deliver to the Lender a Note with the amount of the
initial Disbursement in the form of Annex B-1 attached hereto (the
"DISBURSEMENT NOTE").

(b) During the Availability Period, prior to each Disbursement other than the
initial Disbursement, the Borrower shall issue and deliver to the Lender a new
Disbursement Note substantially in the form of Annex B-1 in exchange for the
Note currently held by the Lender. The new Disbursement Note shall cover the
aggregate amount of the Loan up to then disbursed and outstanding.

(c) In order to evidence its obligations to repay the Loan and to pay interest
thereon and Exposure Fee, the Borrower shall, within ten (10) days after the
Acceptance Date, issue and deliver to the Lender a Note substantially in the
form of Annex B-2 (the "REPAYMENT NOTE") and the Repayment Note shall
incorporate the repayment schedule (the "REPAYMENT SCHEDULE") of the Loan
finally outstanding. The value of the Repayment Note will be amortized in line
with Repayment Schedule.

(d) Upon issuance and delivery of each new Note pursuant to Section 6.2 (b) and
(c) or upon the full payment of all sums payable on the Repayment Note, the
Lender shall cancel the Note and return the previous Note to the Borrower. The
returned Note shall be marked as cancelled or fully paid, as the case may be.

SECTION 6.3 VOLUNTARY PREPAYMENT

(a) Upon giving not less than thirty (30) days' prior written notice to the
Lender, the Borrower may voluntarily prepay, all or any portion of the Loan
together with all interest accrued to the date of prepayment on the amount
prepaid and with all other amounts then payable under the Agreement.

(b) The amount of any partial prepayment shall be equal to the amount of an
installment for repayment of the Loan or an integral multiple thereof or all of
the Loan then

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outstanding. Such prepayment shall be applied to installments of the Loan in the
inverse order of maturity. The Borrower shall not be entitled to reborrow under
the Agreement any amounts so prepaid.

(c) The Borrower shall, simultaneously with any prepayment made under this
Section 6.3, pay a prepayment premium of one half of one percent (0.5%) of the
amount of principal to be prepaid.

(d) The notice of voluntary prepayment shall specify the amount to be prepaid
and the date of prepayment (which shall be a Banking Day). Such notice shall be
effective only if received by the Lender and once it is received by the Lender
it shall be irrevocable. In addition, once the date for any voluntary prepayment
has been notified such date shall be deemed as the due date for the principal
and the interest thereon to be paid and should the Borrower fail to pay any such
principal and/or interest on such date, the Borrower shall be in default
pursuant to Article 13 of this Agreement.

SECTION 6.4 MANDATORY PREPAYMENT

(a) If, for any reason before the Acceptance Date, (i) the Contract is
terminated or cancelled or (ii) the Lender reasonably determines that the
Project shall not be completed in accordance with the Contract, then (i) the
Facility which has not yet been disbursed as of such termination, cancellation
or determination shall automatically and immediately terminate and (ii) the
Borrower shall, without any premium or penalty, prepay within thirty (30)
Banking Days after the Lender's written request of payment all of the Loan
outstanding together with accrued interest thereon, unless the Lender shall
otherwise agree in writing.

(b) The Borrower shall prepay an amount equal to any refund or other return by
the Supplier of amounts paid by the Borrower to the Supplier under the Contract
from the Facility within thirty (30) Banking Days after the date on which the
Borrower receives such refund or other return.

(c) Once the date for any mandatory prepayment under this Section 6.4 has been
fixed, such date shall be deemed as the due date for the amount to be prepaid
and should the Borrower fail to pay any such amount on such date, the Borrower
shall be in default

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pursuant to Article 13 of this Agreement.

                         ARTICLE 7 PAYMENT AND CURRENCY

SECTION 7.1 PLACE OF PAYMENT

All payments to be made by the Borrower under the Agreement shall be made in
U.S. Dollars in immediately available funds to the account of the Lender with
Deutsche Bank Trust Company Americas, Church Street Station, New York, N.Y.
10015, U.S.A. (Account No. 04-029-695), or to such other account as the Lender
may from time to time designate to the Borrower in writing not less than ten
(10) days prior to the relevant due date for any payment hereunder.

SECTION 7.2 BANKING DAY

If any payment to be made by the Borrower under the Agreement falls due on a day
which is not a Banking Day, such payment shall be made on the immediately
following Banking Day and interest thereon, if any, shall be adjusted
accordingly.

SECTION 7.3 PAYMENTS TO BE FREE AND CLEAR

Any and all sums payable by the Borrower under the Agreement shall be paid in
full, without set-off or counterclaim or any restriction or condition, and free
and clear of any Tax, levy, impost, charges or other deduction or withholding of
any nature.

SECTION 7.4 GROSSING-UP OF PAYMENTS

If the Borrower or any other Person is required by any law or regulation to make
any deduction or withholding (on account of Tax or otherwise) from any payment
made or to be made to the Lender under the Agreement, the Borrower shall:

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<PAGE>
(i)   pay together with such payment, such additional amount as will ensure
      that the Lender receives the full amount which it would have received if
      no such deduction or withholding had been made or required to be made;

(ii)  pay the full amount deducted to the relevant authority in accordance with
      applicable law; and

(iii) promptly furnish to the Lender a copy of a receipt evidencing payment
      thereof

SECTION 7.5 BANKING CHARGES, ETC.

The Borrower shall pay or cause to be paid all banking charges or fees, if any,
incurred in connection with (i) the Disbursements hereunder and (ii) the
payment, repayment or prepayment of principal, Interest, Commitment Fee,
Exposure Fee, Management Fee or any other amount due to the Lender under the
Agreement.

SECTION 7.6 APPLICATION OF INSUFFICIENT PAYMENTS

If the amount of any payment made under the Agreement by the Borrower to the
Lender is less than the total amount due and payable in respect of such payment,
the insufficient amount so received by the Lender shall be applied toward and in
the order of:

(i)   unpaid costs and expenses then due and payable;

(ii)  Default Interest accrued in accordance with Section 4.2;

(iii) accrued interest due and payable in accordance with Section 4.1;

(iv)  principal of the Loan then due and payable in the order of maturity; and

(v)   any amount due and not otherwise provided for in this Section 7.6,

provided, however, that, where the Lender determines in its sole discretion it
is necessary to change the above application order for its efficient Loan
management purpose, the Lender may apply the insufficient amount so received
toward the items of (i) to (v) above in the order as the Lender considers
appropriate.

SECTION 7.7 LOAN ACCOUNTS

                                       19
<PAGE>
The Lender may, in accordance with its usual practice, maintain a set of
accounts recording the amount of each Disbursement, the aggregate amount of the
Loan outstanding, the repayments of the Loan, the computation and payment of
interest and Default Interest and the payment of other amounts due hereunder. In
any legal action or any other similar proceeding in respect of the Agreement,
the entries made by the Lender in such accounts shall, in the absence of
manifest error, be conclusive evidence of the existence and amounts of the
obligations of the Borrower therein recorded. Notwithstanding the provision
hereinabove, the failure of the Lender to maintain such accounts or any manifest
error therein shall not in any manner affect the obligation of the Borrower to
repay the Loan in accordance with the terms of the Agreement.

SECTION 7.8 DOLLAR TRANSACTION

The payment of all amounts due hereunder in U.S. Dollars is of essence of the
Agreement, and the obligation of the Borrower under the Agreement to make
payment in U.S. Dollars shall not be discharged by any amount paid in another
currency, whether pursuant to a judgement or otherwise, to the extent that the
amount so paid on prompt conversion to U.S. Dollars under normal banking
procedures does not yield the amount of U.S. Dollars due hereunder.

                         ARTICLE 8 CONDITIONS PRECEDENT

SECTION 8.1 CONDITIONS TO INITIAL DISBURSEMENT

As conditions precedent to the initial Disbursement hereunder (i) All of the
Commitment Fee and Management Fee and any other amount which are due as of the
date of the initial Disbursement shall have been paid in full and (ii) the
following documents, instruments and evidence shall have been received by the
Lender, in form and substance satisfactory to the Lender:

(a) Contract. A certified executed copy of the Contract and any amendment
thereof, if

                                       20

<PAGE>
any, and, if necessary, evidence that the Contract is in full force and effect;

(b) Articles of Incorporation. A certified copy of the articles of incorporation
of the Borrower;

(c) Board Resolutions of the Borrower. Certified copies of the resolutions of
the board of directors of the Borrower resolved in accordance with the articles
of incorporation of the Borrower and in conformity with applicable legislation
and/or regulation authorizing and approving the Borrower to enter into the
Agreement and to issue the Note;

(d) Certificate of Authority. Certificate of authority, substantially in the
form of Annex F, of each person (i) who has signed the Agreement and the Note
for and on behalf of the Borrower, and (ii) who will sign Requests for
Disbursement, statements and other documents required under the Agreement,
together with the authenticated specimen signatures of each such person;

(e) Note. The promissory note for the Loan issued by the Borrower;

(f) Legal Opinions. An opinion of legal counsel to the Borrower substantially in
the form of Annex G; and

(g) Acceptance Letters of Process Agents. The acceptance letters from the
process agents specified in Section 14.3 substantially in form and substance of
Annex H.

(h) Escrow Account. Document issued by the escrow account bank, certifying the
establishment of the Escrow Account without any restriction.

SECTION 8.2 CONDITIONS TO EACH DISBURSEMENT

As conditions precedent to each Disbursement including the initial Disbursement,
each of the following conditions shall be satisfied as of the date of each
Disbursement:

(a) No Default. Neither an Event of Default nor an event which, with the giving
of notice or the lapse of time or both, would constitute an Event of Default
shall exist as of

                                       21
<PAGE>
the date of each Disbursement;

(b) Continuing Representations. All the representations and warranties made by
the Borrower in or in connection with the Agreement shall remain true and
accurate in all material respects on and as of the date of each Disbursement;
and

(c) Continued Effect. All of the documents, instruments, evidence, Contracts,
authorizations and actions referred to in Section 8.1 above are in full force
and effect as of the date of each Disbursement or, if any change has occurred,
the Lender has received supplementary evidence and signature with respect
thereto in form and substance satisfactory to the Lender.

                    ARTICLE 9 REPRESENTATIONS AND WARRANTIES

The Borrower represents and warrants to the Lender as follows:

SECTION 9.1 STATUS OF BORROWER

The Borrower (i) is a limited liability company duly incorporated and validly
existing under the laws of Indonesia, (ii) is a legal entity capable of being
sued in its own name, and (iii) has the full power and authority to own its
property, to conduct its business as currently being conducted and to enter into
and to consummate the transactions contemplated in the Agreement.

SECTION 9.2 AUTHORIZATION OF BORROWING

The Borrower has taken all necessary action and procedures to authorize the
execution and delivery of the Agreement, the Note and all other documents
hereunder, and to authorize the performance of its obligations under the
Agreement and the Note.

                                       22
<PAGE>
SECTION 9.3 ENFORCEABILITY AND PROPER LEGAL FORM

The Agreement has been duly executed and delivered by the Borrower and
constitutes, and the Note when it is duly executed and delivered by the Borrower
will constitute, the legal, valid and binding obligation of the Borrower
enforceable against the Borrower in accordance with their respective terms. The
Agreement and the Note are in proper legal form under the laws of Indonesia for
enforcement in the courts of Indonesia.

SECTION 9.4 NO CONTRAVENTION

The execution, delivery and performance of the Agreement and all instruments or
agreements required herein will not (i) violate or contravene any law, by-law,
regulation or any other constitutive document which is applicable to the
Borrower, (ii) constitute a default or an event that would constitute a default
under any agreement or instrument to which the Borrower is a party, and (iii)
violate or contravene any judgment, injunction, order or decree binding upon
the Borrower or any of its property.

SECTION 9.5 RANKING OF LOAN

The Borrower's obligations under the Agreement and the Note rank and will rank
at least pari passu in priority of payment and in all other respects with all
other Indebtedness of the Borrower.

SECTION 9.6 GOVERNMENT APPROVALS

All governmental authorizations, registrations, approvals and other acts (i)
necessary to authorize the Borrower's execution, delivery and performance of the
Agreement or any agreement and instrument required herein or (ii) required for
the legality, validity and enforceability of the Agreement or any agreement and
instrument required herein have been duly obtained or performed and are valid
and subsisting in full force and effect.

                                       23
<PAGE>
SECTION 9.7 COMMERCIAL ACTS

The Borrower is subject to civil and commercial law with respect to its
obligations under the Agreement and the Borrower's execution and delivery of the
Agreement as well as the Borrower's performance of its obligations hereunder
constitutes private and commercial acts rather than governmental or public acts.

SECTION 9.8 NO LEGAL PROCEEDINGS

There are no legal or administrative actions, claims or other proceedings
pending or threatened before any court or governmental agency which would
materially and adversely affect:

(i)   the financial condition or business of the Borrower;
(ii)  the Borrower's ability to perform its obligation under the Agreement; or
(iii) the legality, validity or binding effect of any provisions of the
      Agreement.

SECTION 9.9 FINANCIAL STATEMENTS

The Borrower's audited financial statements most recently delivered to the
Lender:

(i)  have been prepared in accordance with accounting principles and practices
     generally accepted in Indonesia and consistently applied; and

(ii) accurately represent its financial condition as at the date to which they
     were drawn up, and

there has been no material adverse change in the financial condition of the
Borrower since the date to which those financial statements were drawn up.

SECTION 9.10 INFORMATION

All information provided by the Borrower to the Lender before the date of the
Agreement:

                                       24
<PAGE>
(i)   were true in all material respects as of the date thereof;

(ii)  did not omit any information which, if disclosed, might materially and
      adversely affect the decision of a Person considering whether to enter
      into the Agreement; and

(iii) as at the date of the Agreement, nothing has occurred since such
      information was provided to the Lender which renders the information
      contained in it untrue or misleading in any material respect and which, if
      disclosed, might materially and adversely affect the decision of a person
      considering whether to enter into the Agreement.

SECTION 9.11 NO DEFAULT

No event has occurred and is continuing which constitutes or which, with the
giving of notice or the lapse of time or both, would constitute an Event of
Default or a default under any agreement to which the Borrower is a party or by
which it may be bound.

SECTION 9.12 EFFECTIVENESS OF THE CONTRACT

The Contract has been duly executed and delivered by the Borrower and
constitutes a valid and binding obligation of the Borrower enforceable in
accordance with its terms, and all corporate and governmental authorization,
procedures and consents necessary for the execution, delivery, performance and
observance of the Contract have been duly effected, completed and obtained.

SECTION 9.13 NEGATIVE PLEDGE

(a)  The Borrower shall not, in favour of any of the lenders of Financing
     Package I (as defined in the Contract), and without prior consent of the
     Lender i) create or permit to exist any mortgage, pledge, lien, charge,
     assignment, hypothecation or other security interest having a similar
     effect (the "SECURITY INTEREST") on any of its assets or ii) provide
     guarantee or indemnity.

                                       25
<PAGE>
(b)  Where the Borrower, in favour of any of the lenders of Financing Package 1
     (as defined in the Contract), creates or permits to exist any Security
     Interest (as defined in Section 9.13 hereof) on any of its assets or ii)
     provides guarantee or indemnity, the Borrower shall simultaneously create
     or permit to exist such Security Interest or provide such guarantee or
     indemnity in favour of the Lender.

SECTION 9.14 CONTINUING REPRESENTATIONS AND WARRANTIES

The representations and warranties of the Borrower made in the Agreement shall
be continuing representations and warranties, shall survive the execution of the
Agreement and shall be deemed to be repeated by the Borrower on the date of each
Request for Disbursement by reference to the facts then existing.

                              ARTICLE 10 COVENANTS

The Borrower covenants and agrees that, until any portion of the Facility
remains undisbursed and/or all amounts owing under the Agreement and the Note
have been paid in full, it shall observe and perform the following obligations:

SECTION 10.1 UNDERTAKING OF BORROWER

The Borrower shall perform all of its obligations under the Agreement and the
Note independently of any claims which it may now or hereafter have against the
Supplier or any other person in connection with the performance of the Contract.
The Borrower hereby agrees to forego the utilization of such claims as the basis
of any counterclaim against, or deduction or set-off from, the payment of the
indebtedness of the Borrower under the Agreement.

                                       26
<PAGE>
SECTION 10.2 MAINTENANCE OF GOVERNMENT APPROVALS

The Borrower shall maintain and renew any such authorizations, approvals,
consents, licenses, exemptions and registrations required under any applicable
law or regulations to enable it to perform its obligations under or for the
validity or enforceability of the Agreement and the Note.

SECTION 10.3 REPRESENTATIONS AND WARRANTIES

The Borrower shall ensure that the representations and warranties contained in
the Agreement remain true and accurate by reference to the facts and
circumstances from time to time existing.

SECTION 10.4 NOTICE OF DEFAULT

The Borrower shall promptly give written notice to the Lender of each event that
constitutes or that, with the giving of notice or the lapse of time or both,
would constitute an Event of Default and each other event that has or might have
a materially adverse effect on the Borrower's ability to perform its obligations
under the Agreement.

SECTION 10.5 PROJECT IMPLEMENTATION AND MODIFICATIONS OF CONTRACT

(a) The Borrower shall implement, complete and operate the Project with due
diligence and efficiency without any unnecessary delay, and in conformity with
sound administrative, engineering and financial practices, and the Borrower
shall not, without the prior written consent of the Lender, make any substantial
alteration to the scope or nature of the Project.

(b) Prior to making (i) any material modification, alteration, amendment or
cancellation of the Contract or (ii) any assignment of the Borrower's rights or
obligations under the Contract, the Borrower shall obtain or cause the Supplier
to obtain the written consent of the Lender, whose consent shall not be
unreasonably withheld. The Borrower shall, promptly after such modification or
assignment, deliver or cause to be delivered to the Lender a true and complete
copy of all documents related thereto.

                                       27
<PAGE>
SECTION 10.6 COMPLIANCE CERTIFICATES

The Borrower shall supply to the Lender promptly at any time, if the Lender so
requests, a certificate signed by two of its senior officers on its behalf
certifying that no Event of Default or an event which, with the giving of notice
or the lapse of time or both, would constitute an Event of Default is
outstanding or, if such Event of Default or, as the case may be, such an event
is outstanding, specifying the Event of Default or, as the case may be, the
relevant event and the steps, if any, being taken to remedy it.

SECTION 10.7 DISPOSALS

The Borrower will not sell, transfer, lend or otherwise dispose of or cease to
exercise direct control over any part of its present or future undertaking, core
operating assets, rights or revenues which, either alone or when aggregated with
all disposals falling to be taken into account pursuant to this Section 10.7.,
exceeds in any financial year the lower of (a) 5% of the Borrower's net fixed
assets (as reported in its Annual Report), or (b) One Hundred Million U.S.
Dollars (US $100,000,000) (or the equivalent thereof in any other currency).

SECTION 10.8 CHANGE OF BUSINESS

The Borrower shall ensure that, without prior written consent of the Lender, no
substantial change is made to the general nature or scope of the business of the
Borrower from that carried on at the date of the Agreement.

SECTION 10.9 MERGERS AND ACQUISITIONS

The Borrower will not merge or consolidate with any other company or person
unless, after any such merger or consolidation:

(a) the Borrower is the surviving entity;

(b) the nature of the Borrower's business is not fundamentally different from
that which it carries on as at the date hereof; and

                                       28
<PAGE>
(c) such merger or acquisition would not have a material adverse affect on the
ability of the Borrower to perform its obligations under the Agreement.

SECTION 10.10 DOCUMENTS AND INFORMATION

(a) The Borrower shall furnish the Lender with copies of the annual reports and
audited financial statements of the Borrower promptly after they are prepared,
and in any event not later than one hundred and eighty (180) days after the
close of each of the Borrower's financial years. Such financial statements shall
be prepared in accordance with generally accepted accounting principles of
Indonesia.

(b) The Borrower shall supply to the Lender as soon as the same are available
and in any event within one hundred and twenty (120) days after the end of the
first half-year of each of its financial years the unaudited financial
statements of the Borrower for that half-year.

(c) The Borrower shall supply to the Lender:

(i)  promptly upon becoming aware of them, details of any litigation,
     arbitration or administrative proceedings which are current, threatened or
     pending, and which might, if adversely determined, have a material adverse
     effect; and

(ii) promptly upon reasonable request of the Lender, information regarding or in
     relation to:

     (1)  its current financial condition and operations;

     (2)  the implementation of the Project including, but without limitation,
          the half-yearly progress report and completion report.

SECTION 10.11 CONSULTATION AND VISIT

(a) The Borrower shall, from time to time, at the request of the Lender, consult
with the Lender with respect to the implementation and administration of the
Agreement.

(b) The Borrower shall afford all reasonable opportunity for representatives of
the

                                       29
<PAGE>
Lender to visit any part of its premises (and/or territory as the case may be)
for purposes related to the Agreement.

SECTION 10.12 ENVIRONMENTAL CONSIDERATION

The Borrower shall pay due attention to the protection and conservation of the
environment and ecology, including, but not limited to, giving due consideration
to such issues as air pollution, industrial waste treatment and ecological
changes to the environment in connection with the use of the proceeds of the
Loan, and ensure that it is in compliance with all statutes, laws or regulations
that govern the environment.

                              ARTICLE 11 ILLEGALITY

If it is or becomes unlawful in any jurisdiction for the Lender to give effect
to any of its obligations as contemplated by the Agreement or to fund or
maintain the Facility and/or the Loan, then:

(a) the Lender may notify the Borrower accordingly; and

(b) (i) the Borrower shall forthwith prepay the Loan; and
    (ii) the Facility shall forthwith be cancelled.

                          ARTICLE 12 CURRENCY INDEMNITY

SECTION 12.1 CURRENCY INDEMNITY

(a) If the Lender receives an amount in respect of the Borrower's liability
under the Agreement in a currency other than U.S. Dollars or if that liability
is converted into a claim, proof, judgment or order in a currency other than
U.S. Dollars:

                                       30
<PAGE>
(i)   the Borrower shall indemnify the Lender as an independent obligation
      against any loss or liability arising as a result of the conversion;

(ii)  if the amount received by the Lender, when converted into U.S. Dollars at
      a market rate in the usual course of its business is less than the amount
      owed in U.S. Dollars, the Borrower shall forthwith on demand pay to the
      Lender an amount in U.S. Dollars equal to the deficit; and

(iii) the Borrower shall forthwith on demand pay to the Lender any exchange
      costs and taxes payable in connection with any such conversion.

(b) The Borrower waives any right it may have in any jurisdiction to pay any
amount under the Agreement in a currency other than that in which it is
expressed to be payable.

SECTION 12.2 OTHER INDEMNITIES

The Borrower shall forthwith indemnify the Lender against any loss or liability
which the Lender incurs as a consequence of:

(i)  the occurrence of any Event of Default or any event which, with the giving
     of notice or the lapse of time or both, would constitute an Event of
     Default; and/or

(ii) the Loan or part of the Loan not being prepaid in accordance with a notice
     of prepayment or a Disbursement not being made after the Borrower has
     delivered a Request for Disbursement.

The Borrower's liability in each case includes any loss of interest or other
loss or expense on account of funds borrowed, contracted for or utilized to fund
any amount payable under the Agreement, any amount repaid or prepaid or any
Disbursement.

                          ARTICLE 13 EVENTS OF DEFAULT

SECTION 13.1 EVENTS OF DEFAULT

Each of the following events or occurrences shall constitute an Event of Default
under

                                       31
<PAGE>
the Agreement:

(a) The Borrower fails to pay any amount of principal, interest, or any other
amount payable under the Agreement or the Note on the date when such amount is
due in accordance with the provisions of the Agreement or the Note, and such
failure to pay shall continue for a period of fifteen (15) days. Default
Interest in accordance with Section 4.2 shall accrue during such fifteen (15)
day period.

(b) The Borrower repudiates the Agreement or the Note or does or causes to be
done any act or thing evidencing an intention to repudiate the Agreement or the
Note.

(c) The Borrower fails to perform or observe any of the terms, conditions,
covenants or provisions set forth in the Agreement, exclusive of any events
specified as Events of Default in this Section, and such failure remains
unremedied for a period of thirty (30) days after written notice thereof has
been given to the Borrower by the Lender.

(d) Any representation or warranty made or deemed to be made (i) by the
Borrower in the Agreement or contained in any certificate, statement or notice
provided by or on behalf of the Borrower under or in connection with the
Agreement proves to have been incorrect or misleading in any material respect
and, if capable of being cured, shall not have been corrected to the
satisfaction of the Lender within thirty (30) days after receipt by the Borrower
of a written notice from the Lender requiring to cure such incorrectness.

(e) The Borrower (i) generally stops payment of its debt when due or generally
enters into a moratorium or (ii) the Borrower commences negotiations with any
one or more of its creditors with a view to the general readjustment or
rescheduling of its Indebtedness.

(f) The Borrower fails to discharge when due any of its (i) payment obligation
to the Lender under any other agreement in any amount or (ii) External
Indebtedness, including, without limitation, the Borrower's debts to third
parties payable under any other agreement in an amount greater than One Million
U.S. Dollars (US$1,000,000) (or the equivalent thereof in another currency), or
any such amount has, prior to the scheduled maturity thereof, become due and
payable as a result of a default thereunder.

(g) Indonesia or any other authority having jurisdiction shall have taken any
action for the dissolution of the Borrower or for the suspension of itsr
operation, or the Borrower,

                                       32
<PAGE>
for any other reason, ceases to carry on its business it carries on at the date
hereof.

(h) The Borrower voluntarily or involuntarily merges or consolidates with any
other entity, which may reasonably be considered by the Lender to materially and
adversely affect the ability of the Borrower to perform all or any of its
obligations under the Agreement or the Note.

(i) The Borrower becomes insolvent or commits or permits any act of bankruptcy,
reorganization, liquidation, dissolution or winding-up or any corporate action
or other procedures are taken against the Borrower for the appointment of a
receiver, administrator, trustee or similar officer of it or of any and all of
its revenues and assets.

(j) A writ of attachment or execution or similar process is issued against a
substantial part of the assets of the Borrower which remains undismissed,
unbonded or undischarged for a period of thirty (30) days.

(k) Any governmental authorization necessary for the performance of any
obligations of the Borrower under the Agreement, the Note fails to remain valid
and subsisting in full force and effect during the term of the Agreement.

(l) The Borrower replaces, without prior written consent of the Lender, the
Supplier or the Contract is terminated or cancelled or ceases to be valid for
any reason before the Acceptance Date.

(m) It is or becomes unlawful for the Borrower to perform any of its obligations
under the Agreement or the Note.

(n) Any other event occurs or any other circumstance arises which, in the
reasonable judgment of the Lender, is likely materially and adversely to (i)
affect the ability of the Borrower to perform all or any of its obligation under
the Agreement or the Note or (ii) prevent or interfere with the successful
implementation, completion or operation of the Project.

                                       33
<PAGE>
SECTION 13.2 CONSEQUENCES OF DEFAULT

(a) If any Event of Default or any event or circumstance which would, with
giving of notice, lapse of time, the making of a determination or any
combination thereof, become an Event of Default ("POTENTIAL EVENT OF DEFAULT")
occurs, the Borrower shall immediately notify it to the Lender specifying the
nature of such Event of Default or Potential Event of Default and any steps the
Borrower is taking to remedy it.

(b) If any Event of Default or Potential Event of Default shall occur and be
continuing, the Lender may at its option and by written notice to the Borrower:

     (i)   suspend further Disbursement regardless whether a Request for
           Disbursement is received by the Lender or not, until such Event of
           Default or Potential Event of Default is cured;

     (ii)  cancel the undisbursed portion of the Facility; and/or

     (iii) declare the Loan, together with all accrued interest and any other
           amounts payable under the Agreement, to be forthwith due and payable;

whereupon the same shall be superseded, cancelled and/or immediately become due
and payable without further notice or formality.

(c) Upon the occurrence and during the continuance of any Event of Default or
Potential Event of Default, the Lender is hereby authorized, to the fullest
extent permitted by law, to set off and apply any and all deposits at any time
held and other obligations at any time owing by the Lender to or for the credit
or the account of the Borrower against any and all of the obligations of the
Borrower existing under the Agreement, irrespective of whether the Lender shall
have made any demand under the Agreement, and without presentment, protest or
notice of any other kind to the Borrower, all of which are expressly waived,
although such obligations may not have been matured.

(d) Provided, however, and subject to Section 15.2 of the Agreement, that if, at
any time after an Event of Default or Potential Event of Default has occurred
and before the Lender has made such a declaration, such Event of Default or
Potential Event of Default has been waived by the Lender in writing or remedied
to the satisfaction of the Lender, such Event of Default or Potential Event of
Default will no longer be an Event of Default or Potential Event of Default and
will be deemed to have never occurred and the

                                       34

<PAGE>

Lender will not thereafter be entitled to make any such declaration as mentioned
above in respect of such Event of Default or Potential Event of Default.

                    ARTICLE 14 GOVERNING LAW AND JURISDICTION

SECTION 14.1 GOVERNING LAW

The Agreement shall be governed by and construed in accordance with the laws of
the State of New York, United States of America.

SECTION 14.2 JURISDICTION

(a) The Borrower agrees that any legal action or proceeding arising out of or
relating to the Agreement may be brought by the Lender in the courts of the
State of New York in the County of New York or in the District Court of the
United States for the Southern District of New York and, by executing and
delivery of the Agreement, the Borrower for itself and in respect of its
property hereby irrevocably, generally and unconditionally accepts and submits
to the non-exclusive jurisdiction of such courts in respect of any such action
or proceeding.

(b) The foregoing provisions of this Section shall not limit the right of the
Lender to bring any such action or proceeding in Indonesia or in any other court
of appropriate jurisdiction.

(c) The Borrower hereby irrevocably:

(i)   waives any objection which it may have at any time to the laying of venue
      of any legal action or proceedings brought in any such court;

(ii)  waives and agrees not to plead or claim in any such court that such legal
      action or proceedings have been brought in an inconvenient forum; and

(iii) further waives the right to object with respect to any such legal action
      or proceeding that such courts do not have jurisdiction over such party.

                                       35

<PAGE>
(d) Both the Borrower and the Lender hereby waive, to the fullest extent
permitted by law, any and all rights to trial by a jury in any legal action or
proceeding arising out of or relating to the Agreement or the transactions
contemplated hereby.

SECTION 14.3 SERVICE OF PROCESS AND ACKNOWLEDGEMENT

The Borrower irrevocably appoints (Name and Address of the Process Agent) as its
agent to receive for and on its behalf and in respect for its property service
of legal process, summons, notices and documents which may be served in any
action or proceeding brought in the State of New York, in state or federal
court, with respect to the Agreement and agrees that the failure of such agent
to give any advice or notice of any such service of process to the Borrower
shall not impair or affect the validity of such service or of any judgment based
thereon. So long as the Borrower has any obligation under the Agreement, the
Borrower shall maintain a duly appointed agent for the service of process and if
it fails to maintain such an agent, any such process may be served by mailing a
copy thereof by registered, postage prepaid mail addressed to the Borrower.

Nothing herein provided shall affect the right of the Lender giving service of
process to the Borrower in any other manner permitted by applicable law.

SECTION 14.4 WAIVER OF IMMUNITY

The Borrower irrevocably waives, to the fullest extent permitted by applicable
law, all immunity to which it or its property may be or become entitled, whether
on the basis of sovereignty or otherwise, from suit, judgment, service of
process upon it or its agent, set-off, attachment (whether before or after
judgment), execution or other legal process in any action or proceeding arising
out of or relating to the Agreement or any transaction contemplated hereunder.
The Borrower hereby consents generally to the giving of any relief or the issue
of any process in connection with any such action or proceedings, including, but
not limited to, enforcement or execution against any of its property whatsoever
(irrespective of its use or intended use) of any order or judgment which may be
made or given in such action or proceeding.

                                       36

<PAGE>

                            ARTICLE 15 MISCELLANEOUS

SECTION 15.1 ENTIRE AGREEMENT; AMENDMENT

The Agreement constitutes the entire obligation of the parties hereto and
supersedes any prior expressions of intent or understandings with respect to
this transaction. Any amendment, modification or supplement of the Agreement
shall be in writing and shall be signed by duly authorized representatives of
both parties hereto.

SECTION 15.2 NO WAIVER AND CUMULATIVE RIGHTS

No failure or delay on the part of the Lender to exercise any of rights provided
for in the Agreement shall constitute a waiver of such right nor shall any
single or partial exercise of any such right preclude any further exercise
thereof. No waiver by the Lender hereunder shall be effective unless it is in
writing. The rights and remedies provided for in the Agreement are cumulative
and not exclusive of any other rights or remedies which the Lender may otherwise
have.

SECTION 15.3 DISCLAIMER

(a) The Lender shall not be responsible in any way for the performance of the
Contract by the parties thereto, and shall have no obligation to intervene in
any dispute arising out of the Contract.

(b) The obligation of the Borrower under the Agreement are absolute,
unconditional, and irrevocable obligations of the Borrower and are not in any
way conditional or dependent upon any performance whatsoever by any Person of
any other obligations. Any claim that the Borrower may have against the Supplier
or any other Person with respect to the performance of the Contract or any other
agreement shall not affect or impair the obligations of the Borrower under the
Agreement.

                                       37

<PAGE>

SECTION 15.4 ASSIGNMENT

The Agreement shall be binding upon and inure to the benefit of each party
hereto and its successors and assigns, provided that the Borrower may not assign
or transfer any of its rights or obligations under the Agreement or the Note in
any manner whatsoever without the prior written consent of the Lender. The
Lender may assign or transfer, with prior notice to the Borrower, all or any
portion of the Loan and its rights, benefits and obligations under the Agreement
or the Note, provided, however, that the Lender shall not assign the Note
without accompanying an assignment of the corresponding rights under the
Agreement.

SECTION 15.5 COMMUNICATIONS

(a) Except as otherwise expressly provided in the Agreement, all notices,
requests, demands or other communications hereunder and any other documents
required to be delivered hereunder shall be in writing and shall be delivered by
hand or sent by air mail (including by internationally recognized courier
services) or by telex or facsimile and shall be deemed delivered:

(i)   if delivered by hand, upon delivery;

(ii)  if sent by air mail, the tenth (10th) day after the date of mailing;

(iii) if sent by telex when appropriate answerback code is duly received by the
      sender thereof; and

(iv)  if sent by facsimile, when duly received by the recipient.

(b) The mailing address and telex and facsimile numbers of the Lender and the
Borrower shall be as follows (or such other address or numbers as either party
from time to time notify the other party in writing):

(i) For the Lender

     The Export-Import Bank of Korea
     16-1, Yoido-dong, Youngdungpo-gu
     Seoul, 150-010 Korea

                                       38

<PAGE>

     Attention: Export Credit Group
     Tel. No.: 822-3779-6415
     Facsimile No.: 822-3779-6748

(ii) For the Borrower

     Perusahaan Perseroan (Persero)
     PT. Telekomunikasi Indonesia, Tbk
     Jalan Japati No. 1,
     Bandung 40133, Indonesia

     Attention: Guntur Siregar - Director of Finance/CFO
     Tel. No.: 62 21 5209824
     Facsimile No.: 62 21 5209834

(c) All notices, requests, demands or other communications hereunder and any
other documents required to be delivered hereunder shall be in the English
language or accompanied by a certified translation thereof into the English
language.

SECTION 15.6 ACCOUNTS

Except otherwise expressly provided in the Agreement, accounts maintained by the
Lender in connection with the Agreement, if any, are prima facie evidence of the
matters to which they relate.

SECTION 15.7 DISCLOSURE

The Lender may disclose such documents, information and records regarding the
Borrower, and the Agreement as the Lender deems appropriate in connection with
any dispute involving the Borrower for the purpose of preserving or enforcing
any of the Lender's rights under the Agreement or the Note or collecting any
amount owing to the Lender or in connection with any proposed assignment
contemplated in Section 15.4.

                                       39

<PAGE>

SECTION 15.8 SEVERABILITY

If any one or more of the provisions of the Agreement or any document executed
in connection herewith shall be invalid, illegal or unenforceable in any respect
in any jurisdiction, the validity, legality and enforceability of the remaining
provisions contained herein or therein in such jurisdiction and the validity,
legality and enforceability of such invalid, illegal or unenforceable provisions
in any other jurisdiction shall not in any way be affected or impaired thereby.

SECTION 15.9 COUNTERPARTS

The Agreement may be executed in any number of counterparts. Any single
counterpart or a set of counterparts signed, in either case, by both parties
hereto shall constitute a full and original agreement for all purposes.

SECTION 15.10 INTERPRETATION

No provision of the Agreement shall be interpreted for or against any party
herein by reason that said party or its legal representative drafted all or any
portion hereof.

IN WITNESS WHEREOF, the parties hereto have caused the Agreement to be executed
and delivered by their respective duly authorized representatives as of the date
and year first above written.

<TABLE>
<S>                                             <C>
For and on behalf of                            For and on behalf of

PERUSAHAAN PERSEROAN (PERSERO)                  THE EXPORT-IMPORT BANK OF KOREA
PT. TELEKOMUNIKASI INDONESIA, TBK

By     /s/ Kristiono                            By     /s/ Young-Hoi Lee
       --------------------------               -------------------------------
Name:  KRISTIONO                                Name:  Young-Hoi LEE
Title: President Director                       Title: Chairman & President
</TABLE>

                                       40<PAGE>
                                                                    Exhibit 4.15

                    MASTER PROCUREMENT PARTNERSHIP AGREEMENT

                       No. K.TEL. 226/HK.910/UTA-00/2002

                            Dated December 23, 2002

                                     BETWEEN

                         PERUSAHAAN PERSEROAN (PERSERO)
                       PT TELEKOMUNIKASI INDONESIA, TBK.

                                       AND

                            ERICSSON CDMA CONSORTIUM
                     - ERICSSON WIRELESS COMMUNICATION INC.
                             - PT ERICSSON INDONESIA
                             - PT INFRACELL NUSATAMA

<PAGE>

                               TABLE OF CONTENTS

<Table>

<S>            <C>            <C>                                                             <C>

CHAPTER 1.     GENERAL TERMS AND CONDITIONS................................................... 3

               Article 1.     Definitions..................................................... 3

               Article 2.     Commencement and Duration of Agreement..........................11

               Article 3.     Project Description.............................................12

               Article 4.     Scope of Work and Deliverables..................................13

               Article 5.     Procurement Partnering Covenants................................15

               Article 6.     Importation; Local Facilities; Compliance with
                              Licenses and Permits............................................18

               Article 7.     Delivery Procedures.............................................20

               Article 8.     Intellectual and Industrial Property Rights.....................21

               Article 9.     Force Majeure...................................................25

               Article 10.    Transfer of Risk and Title......................................27

               Article 11.    Indemnification.................................................27

               Article 12.    Equipment Maintenance and Support...............................29

               Article 13.    Liquidated Damages for Delay....................................30

               Article 14.    Termination of the Agreement....................................32

               Article 15.    Governing Law...................................................36

               Article 16.    Settlement of Disputes..........................................36

</Table>

                                       i
<PAGE>
<Table>

<S>            <C>            <C>                                                             <C>

               Article 17.    Language........................................................39

               Article 18.    Corporate Representations and Warranties........................39

               Article 19.    Confidential Information........................................40

               Article 20.    Notice..........................................................40

               Article 21.    General Provisions..............................................42

CHAPTER 2.     COMMERCIAL TERMS AND CONDITIONS

               Article 22.    Contract Value..................................................43

               Article 23.    Prices, Fees....................................................44

               Article 24.    Taxes and Duties................................................45

               Article 25.    Insurance and Safety............................................45

CHAPTER 3.     FINANCIAL TERMS AND PAYG

               Article 26.    Joint Planning Sessions, Design Review Meetings and
                              Monthly Meetings................................................47

               Article 27.    Installed Line Procurements.....................................55

               Article 28.    Purchase Orders and Procedures..................................56

               Article 29.    Performance Bond................................................61

               Article 30.    Termination of Purchase Orders..................................62

               Article 31.    Terms of Payment................................................66

               Article 32.    PAYG Payments...................................................69

               Article 33.    General Services Payments.......................................72

</Table>

                                       ii
<PAGE>

<Table>
<S>            <C>            <C>                                                             <C>

               Article 34.    Invoicing.......................................................73

               Article 35.    Financing of TELKOM'S Payment Obligations.......................74

               Article 36.    Change Request Procedures.......................................74

               Article 37.    Relocation of Equipment.........................................76

               Article 38.    Details of PARTNER's Bank accounts..............................77

CHAPTER 4.     CONSORTIUM ORGANIZATIONAL MATTERS..............................................78

               Article 39.    Consortium Membership Criteria..................................78

               Article 40.    Assignment and Subcontracting...................................78

               Article 41.    Involvement of Local Entities...................................80

               Article 42.    Logistics.......................................................81

               Article 43.    Inventory.......................................................82

               Article 44.    Local Support Infrastructure....................................83

               Article 45.    Project Management..............................................84

               Article 46.    Research and Development........................................87

               Article 47.    Training, Transfer of Know How and Development of
                              Intellectual Property...........................................88

               Article 48.    Management Forum................................................91

               Article 49.    Development of Indonesian Industry..............................91

CHAPTER 5.     TECHNICAL PROVISIONS...........................................................92

               Article 50.    General Requirement for Equipment...............................92
</Table>

                                      iii
<PAGE>
<Table>

<S>            <C>            <C>                                                             <C>

               Article 51.    Quality Assurance............................................... 93

               Article 52.    Survey, Design, and Planning.................................... 94

               Article 53.    Site Preparation, Acquisition,
                              Rights of Way and Permits....................................... 95

               Article 54.    Installation Procedures and Standards........................... 97

               Article 55.    Testing and Commissioning....................................... 99

               Article 56.    Integration, Interoperability and Compatibility.................107

               Article 57.    Cut Over Procedures.............................................108

               Article 58.    Compliance With Environmental Standards.........................109

               Article 59.    Development of Mediation Device.................................110

               Article 60.    Documentation...................................................111

CHAPTER 6.     SERVICE LEVEL AGREEMENTS.......................................................114

               Article 61.    Service Level Agreements........................................114

CHAPTER 7.     INTER-OPERABILITY AND CO-ORDINATION REQUIREMENTS FOR
               PACKAGE 1 AND PACKAGE 2........................................................114

               Article 62.    General.........................................................114

               Article 63.    JPS, DRMs and monthly meetings..................................116

               Article 64.    Commissioning Tests.............................................117

</Table>

APPENDICES

<Table>
<Caption>

<S>            <C>
Appendix 1     Details of Consortium Members
Appendix 2     Consortium Agreement

</Table>

                                       iv
<PAGE>
     <Table>

     <S>            <C>

     Appendix 3     Scope of Work

     Appendix 4     Price Schedule

     Appendix 5     Technical Specifications

     Appendix 6     Demand Forecast

     Appendix 7     Deployment Plan

     Appendix 8     Project Management Plan

     Appendix 9     Implementation Schedule

     Appendix 10    Local infrastructure

     Appendix 11    Pay as you Grow (PAYG)

     Appendix 12    Purchase Orders

     Appendix 13    Bill of Quantities

     Appendix 14    Technical and Engineering Norms

     Appendix 15    Financing Arrangements

     Appendix 16    Project Schematic

     Appendix 17    Quality Assurance Guidelines/Acceptance Test Procedures

     Appendix 18    Change Request

     Appendix 19    Training

     Appendix 20    Service Level Agreement

     Appendix 21    Inter-Operability Commitment Agreement

     Appendix 22    Documentation

     Appendix 23    Technical Terms

     Appendix 24    Non-Disclosure Agreement

     Appendix 25    Performance Bond

     </Table>

                                       v
<PAGE>

                         MASTER PROCUREMENT PARTNERSHIP
                                    AGREEMENT

                        NO. K.TEL. 226/HK910/UTA-00/2002,

                                23 DECEMBER 2002

THIS MASTER PROCUREMENT PARTNERSHIP AGREEMENT (the "Agreement") is made as of 23
December, 2002

BETWEEN:

(1)      PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA, TBK., a
         limited liability public State-owned company established under the laws
         of the Republic of Indonesia, having its head office at Jalan Japati
         No. 1, Bandung, in this legal action duly represented by KRISTIONO in
         his capacity as President Director, hereinafter referred to as
         "TELKOM";

and

(2)      ERICSSON CDMA CONSORTIUM, established based on Consortium Agreement
         dated 23 December 2002, comprised of ERICSSON WIRELESS COMMUNICATION
         INC., as leader of the Consortium having its head office at 6455 Lusk
         Blvd., San Diego, California 92121-2779, USA, for the purpose of
         signing of this Agreement being duly represented by Mark Cratsenburg,
         in his capacity as Attorney-in-Fact of Ericsson Wireless Communication
         Inc., PT ERICSSON INDONESIA as a member of the Consortium, having its
         legal domicile at Wisma Pondok Indah, 10th Floor Jalan Sultan Iskandar
         Muda V TA, Jakarta 12310-Indonesia, for the purpose of signing of this
         Agreement being duly represented by Ulf Mansson, in his capacity as
         President Director and PT INFRACELL NUSATAMA, as a member of the
         Consortium, having its legal domicile at World Trade Centre, 12th Floor
         Jalan Jenderal Sudirman Kav 29-31, Jakarta 12920-Indonesia, for the

                                       1

<PAGE>

         purpose of signing of this Agreement being duly represented by Djoko N.
         Labbaika, in his capacity as President Director, hereinafter jointly
         referred to as "PARTNER".

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

WHEREAS

(A)      TELKOM is a telecommunications network and service provider which
         provides fixed telecommunications services (fixed wireline and fixed
         wireless) and telecommunications infrastructure throughout Indonesia;

(B)      TELKOM has embarked on a significant investment program to modernize
         and expand its network infrastructure (the "T-21 Program);

(C)      PARTNER under the control of the leading technology supplier, LM
         Ericsson, and having at least one Indonesian member with specialized
         telecommunications expertise, knowledge or infrastructure, has the
         necessary technical expertise, financial resources and strategic
         business interest in establishing a long term business partnership with
         TELKOM for the procurement of core network assets contemplated in the
         T-21 Program. Details of each Consortium members are set out in
         Appendix 1;

(D)      TELKOM, in accordance with the procedures established in the RfP dated
         21 February 2002 has selected and appointed PARTNER under the control
         of the leading technology supplier to enter into this Agreement for the
         purpose of implementing the T-21 Program.

                                       2

<PAGE>

CHAPTER 1. GENERAL TERMS AND CONDITIONS

ARTICLE 1. DEFINITIONS

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

         "BASELINE BILL OF QUANTITIES" ("BoQ") means the baseline bill of
         quantities set out in Appendix 2, as may be modified from time to time
         in accordance with Articles 26 and 36;

         "BUSINESS DAY(S)" means a day, other than a Saturday, Sunday or
         official Indonesian holiday, on which commercial banks in Jakarta are
         open for business during normal working hours;

         "CHANGE REQUEST" means the forms attached as Appendix 18, which in
         accordance with Article 36 shall be used to make any and all
         amendments, among others, to the contents of a Purchase Order;

         "COMMISSIONING" means the successful testing, integration and
         acceptance testing of the Deliverables in a state ready for full
         commercial operation by PARTNER as certified by TELKOM's issuance of
         either an Integrated System Acceptance Test Certificate or a Partial
         Integrated System Acceptance Test Certificate in accordance with the
         terms of this Agreement. "Commission" or Commissioned" shall be
         construed accordingly;

         "CONSORTIUM" means the consortium consisting of a foreign company
         (Ericsson Wireless Communication Inc.) and several Indonesian companies
         (PT Ericsson Indonesia, PT Infracell Nusatama) whose details are listed
         in Appendix 1 which have entered into a consortium agreement dated 23
         December 2002 as attached in Appendix 2;

         "CONTRACT VALUE" means with respect to the overall value of the
         procurement contract contemplated by this Agreement, the sum of all of
         the Purchase Orders and

                                       3

<PAGE>

         with respect to each Purchase Order, the total payment (in USD and IDR
         as the case may be) to be made by TELKOM to PARTNER under each Purchase
         Order for all Deliverables to be supplied under the said Purchase
         Order(s) 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 for the right to use all Intellectual
         Property Rights embodied in the relevant System and all equipment,
         components, software and Documentation forming a part of the
         Deliverables, and for costs of insurance, freight and all other costs
         specified by this Agreement, subject to any variations expressly
         permitted under this Agreement or the respective Purchase Order(s);

         "CUT OVER PERIOD" means the time period set forth in Article 57.2;

         "DELIVERABLES" means the equipment, components, software in object code
         format and Documentation to be delivered and all related services to be
         performed by PARTNER pursuant to Purchase Order(s);

         "DEMAND FORECAST" means the demand forecast set out in Appendix 6 as
         updated from time to time by the Parties during a JPS or DRM;

         "DESIGN REVIEW MEETING" ("DRM") means a design review meeting conducted
         in accordance with Article 26.2;

         "DEPLOYMENT PLAN" means the number of installed lines that are
         projected to be deployed in each year based on subscriber targets as
         set out in Appendix 7, as may be amended from time to time in
         accordance with Article 26;

                                       4

<PAGE>

         "DIVRE" means a TELKOM Regional Division;

         "DOCUMENTATION" means the documentation listed in Appendix 22;

         "DOCUMENTATION ACCEPTANCE CERTIFICATE" means the certificate signed by
         TELKOM indicating that it is satisfied the documentation provided by
         PARTNER complies with the requirements of this Agreement;

         "FISCAL YEAR" means the financial year of TELKOM commencing January 1
         and ending December 31 of each calendar year;

         "GOODS DELIVERY CERTIFICATE" means the certificate signed by TELKOM
         indicating that the goods as delivered by PARTNER have been checked and
         inspected by TELKOM in accordance with Article 7.3;

         "IMPLEMENTATION SCHEDULE" means the time schedule and milestones set
         out in Appendix 9 as amended from time to time in accordance with
         Article 26;

         "INSTALLED LINE PROCUREMENTS" means the number of installed lines that
         will be procured by TELKOM as agreed by the Parties in accordance with
         the flexible procurement methodology contemplated in Article 27;

         "INTEGRATED SYSTEM ACCEPTANCE TEST" or "ISAT" means the integrated
         system test to be performed upon completion of all Sub-systems and
         other tests (including tests on measuring equipment and spare parts),
         in accordance with Article 55 and Appendix 17 (Quality Assurance
         Guidelines/ Acceptance Test Procedures);

         "INTEGRATED SYSTEM ACCEPTANCE TEST CERTIFICATE" means the acceptance
         certificate to be issued and signed by TELKOM after successful
         completion of an Integrated System Acceptance Test;

                                       5

<PAGE>

         "INTELLECTUAL PROPERTY RIGHTS" means patents, registered designs,
         designs, copyrights, semiconductor mask works, and other forms of
         intellectual or industrial property, know-how, inventions, formulae,
         confidential or secret processes, trade secrets and confidential
         information, and any other protected rights and assets, and any
         licenses and permits in connection therewith, in each case in any part
         of the world and whether or not registered or registerable and for the
         full period thereof and all extensions and renewals thereof, and all
         applications for registration in connection with the foregoing;

         "IOP AGREEMENT" means the Interoperability Commitment Agreement
         attached as Appendix 21;

         "IOP CERTIFICATE" means the certificate or statement issued and signed
         by TELKOM confirming that PARTNER's equipment has passed all required
         interoperability tests in accordance with IOP Agreement;

         "JOINT PLANNING SESSION" ("JPS") means a joint planning session to be
         conducted in accordance with Article 26.1;

         "LOCAL CONTENT" means the equipment and services to be provided through
         Local Indonesian Entities or in the Indonesian currency (IDR) amounting
         to at least 20% of the total Contract Value in accordance with Article
         41;

         "LOCAL INDONESIAN ENTITIES" means individuals that are Indonesian
         nationals, proprietary concerns or partnerships owned by Indonesian
         nationals, or companies in which Indonesian nationals hold more than
         51% shares. Subsidiaries of international companies, their
         representative offices and agencies or agents operating in Indonesia
         will not be considered as "Local Indonesian Entities" for this purpose;

         "LOCATION" means a location within a Project area relating to a TELKOM
         PSTN switch (STO);

                                       6

<PAGE>

         "NETWORK" means the telecommunications network to be designed, built
         and supplied by PARTNER pursuant to this Agreement, more particularly
         described in Appendix 3 (Scope of Work);

         "PACKAGE 1" means the regional package of BSS procurement for DIVRE II;

         "PACKAGE LEVEL REQUIREMENT" means the constituent requirements of
         Package 1;

         "PARTIAL INTEGRATED SYSTEM ACCEPTANCE TEST" means the integrated
         system test to be performed upon completion of one or more Sub-systems
         and other tests (including tests on measuring equipment and spare
         parts), in accordance with Article 55 and Appendix 17) (Quality
         Assurance Guidelines/ Acceptance Test Procedures);

         "PARTIAL INTEGRATED SYSTEM ACCEPTANCE TEST CERTIFICATE" means the
         acceptance certificate to be issued and signed by TELKOM after
         successful completion of a Sub-System Acceptance Test pursuant to
         Article 55.8 for which an Integrated System Acceptance Test cannot be
         conducted within a period of thirty (30) calendar days by reason of
         delays in testing of a Sub-system which TELKOM is responsible to
         provide;

         "PAYG PAYMENT PERIOD" means a period calculated in relation to the
         Purchase Orders aggregated on a DIVRE basis in the same Quarter, such
         period commencing from the last date of the Quarter in which the
         relevant Integrated System Acceptance Test Certificate issued by TELKOM
         in relation to Commissioning of the Deliverables in the relevant
         Purchase Order(s) issued in that Quarter and ending four (4) years
         later, or upon TELKOM'S payment of the last PAYG payment due (of the
         last Purchase Order issued), if earlier;

                                       7

<PAGE>

         "PAYG VALUE" means the proportionate value of each Purchase Order
         payable pursuant to Article 31.4;

         "PERCENTAGE INDEX" means the index expressed as a percentage calculated
         in accordance with Article 27.4;

         "PERFORMANCE BOND" Means the performance bond required to be delivered
         by PARTNER to TELKOM pursuant to Article 29;

         "PROJECT MANAGEMENT PLAN" ("PMP") means the project management plan to
         be provided by PARTNER pursuant to Appendix 14;

         "PROJECT" means the work to be undertaken by PARTNER for Package 1 of
         the T-21 Program pursuant to this Agreement for the regional package of
         BSS procurement for DIVRE II;

         "PURCHASE ORDER" means a document issued by TELKOM from time to time
         pursuant to Article 28 and acknowledged by PARTNER for the supply and
         Commissioning by PARTNER of all or parts of the Network 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
         36 shall form an integral part of the Purchase Order;

         "QUARTER" means a calendar three month period, ending on March 31, June
         30, September 30, and December 31 of each calendar year;

         "RFP" means the Request for Proposals for the T-21 Program dated 21
         February 2002;

         "SCOPE OF WORK" means the scope of work set forth in Appendix 3;

         "SITE" means site within a Location where a BTS is to be installed;

         "SLA" OR "SERVICE LEVEL AGREEMENT" means the 3-year service level
         agreement to be entered into between the Parties on Commissioning as
         set forth in Article 61;

                                       8

<PAGE>

         "SUBSCRIBER RECORDER" means the TELKOM's database system in the MSC/NSS
         in the related DIVRE;

         "SUBSCRIBER TARGET" means the projected portion of the number of lines
         to be deployed on an annual basis in the DIVRE/Location for the
         relevant Quarter based on the Deployment Plan as updated and determined
         at the related DRM in relation to the Installed Line Procurements
         agreed for the DIVRE/Location in the relevant Quarter;

         "SUB-SYSTEM" means a BSC, BTS, transmission equipment, BSS NEM
         (equipment grouped as BSS); PDSN, AAA, HA, DNS, Fire wall, PDN's NEM
         (equipment grouped as PDN), and other similar or related equipment,
         including all associated software and components;

         "SYSTEM" means two or more Subsystems forming a network that is ready
         for commercial service;

         "SUB-SYSTEM ACCEPTANCE TESTS" means the tests to be performed upon
         completion of particular Sub-systems in accordance with Appendix 17;

         "TECHNICAL SPECIFICATIONS" means collectively, the technical
         specifications set out in Appendix 5, and the respective manufacturer's
         current published specifications and all specifications agreed pursuant
         to amendments to Agreement or on a Purchase Order;

         "TRAINING ACCEPTANCE CERTIFICATE" means the certificate signed by
         TELKOM indicating that the training provided by PARTNER complies with
         the requirements of this Agreement;

1.2      Technical Terms. Technical terms used in this Agreement (e.g., BTS,
         PDN) are defined in Appendix 23.

1.3      Writings. References in this Agreement to writings shall include
         typewriting, printing, lithography, photography, telefax, facsimile,
         e-mail and telex messages and any mode of reproducing words in a
         legible and non-transitory form.

                                       9

<PAGE>

1.4      Plural; Gender; Persons. Words importing the singular include the
         plural and vice versa; words importing a gender include every gender;
         and references to persons include bodies corporate or unincorporate.

1.5      Agreement. Any document expressed to be "in the agreed form" or
         "agreed" means a document approved by TELKOM and PARTNER and (for the
         purpose of identification) initialled on behalf of each of them.

1.6      Headings. Headings in this Agreement are used for convenience only and
         shall not affect the construction of this contract.

1.7      Days. In this Agreement, unless the context otherwise requires,
         references to a "day" shall mean a period of twenty-four (24) hours
         ending at 12 midnight. Whenever in this Agreement a period of time is
         referred to, the day upon which that period commences shall be the day
         after the day from which the period is expressed to run, or the day
         after the day upon which the event occurs which causes the period to
         start running.

1.8      References. References to Articles and Appendices are references to the
         Articles of and the Appendices to this Agreement. References to any
         laws or regulation shall be construed as references to those laws and
         regulations as from time to time amended or re-enacted.

1.9      Priority of Documents. In the event of any inconsistency between this
         Agreement and the Appendices, the terms and conditions in this
         Agreement shall prevail.

1.10     General and Specific Provisions. In the event of ambiguity or
         inconsistency over the application of any provision of this Agreement,
         this Agreement shall be interpreted to favour the specific

                                       10

<PAGE>

         provision, meaning and/or application over the general provision,
         meaning and/or application.

1.11     Appendices

Appendix 1       Details of Consortium Members
Appendix 2       Consortium Agreement
Appendix 3       Scope of Work
Appendix 4       Price Schedule
Appendix 5       Technical Specifications
Appendix 6       Demand Forecast
Appendix 7       Deployment Plan
Appendix 8       Project Management Plan
Appendix 9       Implementation Schedule
Appendix 10      Local Infrastructure
Appendix 11      Pay as you Grow (PAYG)
Appendix 12      Purchase Orders
Appendix 13      Bill of Quantities
Appendix 14      Technical and Engineering Norms
Appendix 15      Financing Arrangements
Appendix 16      Project Schematic
Appendix 17      Quality Assurance Guidelines/Acceptance Test Procedures
Appendix 18      Change Request
Appendix 19      Training
Appendix 20      Service Level Agreement
Appendix 21      Inter-operability Commitment Agreement
Appendix 22      Documentation
Appendix 23      Technical Terms
Appendix 24      Non-Disclosure Agreement
Appendix 25      Performance Bond

ARTICLE 2. COMMENCEMENT AND DURATION OF AGREEMENT

2.1      This Agreement shall become effective upon signing of this Agreement,
         and shall continue in effect until PARTNER and TELKOM have fully
         performed their respective obligations under this Agreement, unless
         earlier terminated in accordance with Article 14.

2.2      The Scope of Work related to Network deployment shall be carried out
         and completed within 42 months (six months after end of Fiscal Year
         2005), subject to the terms of this Agreement. The period for
         completion includes Sundays and government holidays, days for
         consultancies (meeting and documents approval) with TELKOM and the day
         for signing an Integrated System Acceptance Test Certificate.

                                       11

<PAGE>

2.3      TELKOM's obligations regarding payment for the Deliverables shall end
         upon TELKOM's payment of the last PAYG payment due, subject to the
         performance of TELKOM's obligations under this Agreement.

2.4      The initial term of the SLAs to be entered into by the Parties pursuant
         to Article 61 shall be for a period expiring three (3) years from (i)
         the date of Commissioning of the equipment supplied under the first
         Purchase Order or (ii) an earlier date at TELKOM's request.

ARTICLE 3. PROJECT DESCRIPTION

3.1      This Agreement is an umbrella contract covering the various steps
         involved in the T-21 Program, from demand forecasting, Network design,
         issuance of Purchase Orders, shipping and receiving, installation and
         commissioning, operation and maintenance support, customer utilization
         of the equipment, to the Pay As You Grow payment scheme as illustrated
         in the schematic in Appendix 16 (Project Schematic). Subject to
         agreement of the Parties on procurement requirements for Installed Line
         Procurements in accordance with any adjustments agreed under the
         flexible procurement methodology contemplated for each JPS and DRM as
         set forth in Article 26, PARTNER shall be obligated to undertake and be
         jointly responsible for the demand forecast and solely responsible for
         the survey, design, development, manufacture, delivery, supply,
         installation, integration and Commissioning of the Network, including
         all project management, training and other related services, on a
         turnkey basis.

3.2      "Turnkey basis" means that pursuant to the Scope of Work, once PARTNER
         receives a Purchase Order PARTNER shall be fully and jointly
         responsible for the demand forecast and solely responsible for the
         survey, design, development, manufacture, delivery, supply,
         installation, integration and

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<PAGE>

         Commissioning of the Network, and the remedying of any defects, so as
         to make the Network ready for service. PARTNER shall also do everything
         necessary as reasonably may be inferred from this Agreement as being
         required of PARTNER to perform all of its obligations under this
         Agreement. PARTNER shall provide all personnel, goods, consumables and
         other things and services, whether of a temporary or permanent nature,
         required in and for the design, execution, completion of the Network
         and the remedying of defects. TELKOM shall cooperate with PARTNER as it
         performs its obligations under this Agreement on a turnkey basis.

ARTICLE 4. SCOPE OF WORK AND DELIVERABLES

4.1      The Scope of Work for this Project is set out in Appendix 3 (Scope of
         Work).

4.2      PARTNER agrees and undertakes to:

4.2.1    carry out the Scope of Work in a good and workmanlike manner in
         accordance with the Technical Specifications using materials necessary
         for the completion of the said works which are of the quality and
         standards specified in Appendix 5 (Technical Specifications);

4.2.2    be solely responsible for the correct design, quality and adequacy of
         the works and for the correct quantities of materials, articles and
         goods necessary for completion of the said works in accordance with
         Appendix 3 (Scope of Work) and Appendix 5 (Technical Specifications);

4.2.3    to provide the equipment, components, software, and Documentation as
         specified in Appendix 3 (Scope of Work), Appendix 5 (Technical
         Specifications) and Appendix 4 (Price Schedule) and all cables,
         connectors and other miscellaneous materials required for completion of
         the Network in accordance with the terms of this Agreement. All such
         equipment, components, software and

                                       13

<PAGE>

         Documentation shall conform in all respects with the technical,
         capacity, functionality, design features and performance specifications
         set out in Appendix 5 (Technical Specifications);

4.2.4    conduct a survey, design, plan, develop, manufacture, deliver, install,
         test, Commission, and interconnect the equipment and software and
         provide all other services relevant or relating to the Network in
         accordance with Appendix 3 (Scope of Work), Appendix 5 (Technical
         Specifications) and Appendix 9 (Implementation Schedule), and otherwise
         in accordance with this Agreement;

4.2.5    perform the works under each Purchase Order in accordance with Appendix
         9 (Implementation Schedule) and complete each stage of the works by the
         relevant dates or times specified;

4.2.6    provide the Documentation to TELKOM in accordance with this Agreement;

4.2.7    provide land acquisition and frequency licence application services in
         accordance with this Agreement;

4.2.8    provide services to TELKOM upon request from TELKOM by the issue of a
         Purchase Order in accordance with the unit prices stated in Appendix 4
         (Price Schedule);

4.2.9    provide technical personnel as specified in the Purchase Order in
         accordance with the prices stated in Appendix 4 (Price Schedule);

4.2.10   provide training in accordance with Article 47 of this Agreement; and

4.2.11   perform and comply with all its other obligations under this Agreement
         and the respective Purchase Orders.

4.3      PARTNER shall ensure the proper interworking, interfacing and
         integration of the Network with the equipment and software of any third
         party vendor or other licensed operators in Indonesia

                                       14

<PAGE>

         which are connected to Network equipment, software, and systems
         specified in Appendix 3 (Scope of Work) and Appendix 5 (Technical
         Specifications) or if not so specified, then in accordance with best
         practice industry standards as agreed by the Parties.

4.4      PARTNER shall design the Network in such a way that, unless otherwise
         agreed in writing:

4.4.1    individual Sub-systems (including all services) are deployable
         regardless of the deployment status of other Systems or Sub-systems;

4.4.2    the Network can be readily scaled up or down to meet changing customer
         demand;

4.4.3    the Network can be readily migrated from a fixed or limited mobility
         network (allowing a subscriber to move within one BTS coverage area
         only) to a full mobility network in the future;

4.4.4    the Network can be readily migrated to a third generation (3G) based
         network in the future.

ARTICLE 5. PROCUREMENT PARTNERING COVENANTS

5.1      The Parties agree to be guided by certain principles during
         implementation of this Agreement. The general principles set out below
         are intended to be implemented in good faith and are without prejudice
         to the rights and obligations of each Party contained in this
         Agreement:

5.1.1    TELKOM's objective to achieve the optimum performance of its
         telecommunications networks in order to provide the best possible
         service for its customers shall not be deemed incompatible with
         PARTNER's objective to sell its equipment and services on commercial
         terms for a sustained period;

                                       15

<PAGE>

5.1.2    The Parties agree that a key mutual objective is to support the
         development of the Indonesian telecommunications industry and economy
         through maximizing the amount of equipment, materials, manpower and
         services procured locally within Indonesia;

5.1.3    The Parties agree to conduct regular consultations to discuss the
         respective performance of the Network deployment with the aim of
         resolving amicably and promptly any disputes that may arise from time
         to time in the spirit of building joint business opportunities and
         creating mutual value together so as to create a responsive and stable
         commercial relationship between themselves;

5.1.4    PARTNER shall inform TELKOM as effectively and fully as possible, in
         good time, of possible problems with any Deliverables which have been
         delivered or which are to be delivered and of permitted material
         changes in costs, deliveries and developments previously agreed upon
         which may be relevant to TELKOM;

5.1.5    The Parties agree to inform each other as fully as possible of any
         circumstance relevant to the Deliverables affecting the
         telecommunication networks of TELKOM, so as to enable one another to
         respond quickly to technology or commercial developments. With respect
         to future equipment purchases for potential use in Package 1, PARTNER
         shall notify TELKOM of its estimated prices in relation to new
         telecommunications technology adaptable to Indonesia which has been
         developed by LM Ericsson or by its affiliated companies, at least as
         early as the time such technology is offered to other
         telecommunications operators in Indonesia;

                                       16

<PAGE>

5.1.6    Subject to Chapter VII of this Agreement, PARTNER undertakes to consult
         and co-operate with other relevant suppliers of equipment and/or
         services relevant to this Agreement or to the Deliverables, in order to
         achieve optimum functioning of the Deliverables before, during and
         after delivery. Such consultation shall start at the earliest possible
         time and shall include technical support with the aim of achieving the
         optimum operation of the telecommunication networks of TELKOM;

5.1.7    The Parties shall pursue quality improvement and a degree of
         standardisation suitable for the integrated management of the
         telecommunication networks of TELKOM. To that end, PARTNER shall be
         capable of adapting the Network under the T-21 Program to
         state-of-the-art technology over the period of this Agreement;

5.1.8    One of TELKOM's key objectives in the T-21 Program is the purchase of
         equipment and services that conform to international standard while
         minimizing major capital expenditures. PARTNER shall work with TELKOM
         to bring its know-how and expertise to bear in meeting this objective.
         This means, for instance, that PARTNER must use its best endeavours to
         analyze and take into account the financial and technical consequences
         of introducing its technology developments for TELKOM, especially in
         relation to hardware and software delivered by PARTNER and that which
         is already in place in the telecommunication networks of TELKOM;

5.1.9    PARTNER shall take all reasonable measures necessary to communicate to
         TELKOM the advantages and disadvantages of new technology developments,
         including the newest tested technology offered by LM Ericsson or by its
         affiliated companies. PARTNER shall agree from time to time with TELKOM
         on additions or improvements to the "road map" of technological
         development and evolution contemplated

                                       17

<PAGE>

         for the Project which can be implemented during the course of the
         Project in a timely manner;

5.1.10   PARTNER has agreed that it shall not have exclusive rights in its
         Package 1 (BSS) area to install, deploy equipment and/or provide
         services over the duration of the T-21 Program, in consideration of
         which TELKOM has agreed to procure from PARTNER at least the minimum
         Installed Line Procurements as provided in Chapter 3.

ARTICLE 6. IMPORTATION; LOCAL FACILITIES; COMPLIANCE WITH LICENSES AND PERMITS

6.1      Except as may otherwise be agreed between the Parties, Deliverables
         which are imported into Indonesia shall be imported in the name of
         TELKOM but under the physical arrangement and management of PARTNER.
         All importation of Deliverables under this Agreement shall be
         calculated on a cost at Location/Site basis and shall be delivered at
         the agreed time and place and in accordance with applicable Indonesian
         regulations and this Agreement. PARTNER shall initially make the
         payment of any import VAT, sales tax on luxury goods, if applicable,
         income tax Article 22 on imports, import/customs duties and all customs
         clearance costs in relation to all imports. PARTNER shall at its own
         cost obtain all required Indonesian import permits and approvals
         necessary to import any equipment, components, spare parts and software
         into Indonesia in the name of TELKOM. TELKOM shall cooperate with
         PARTNER in this process and provide PARTNER with all documents
         reasonably requested by PARTNER in connection with any import
         application required to include TELKOM's name for purposes of
         importation. TELKOM shall ensure prompt signature and delivery of
         documents required by the competent authorities for such purposes.

                                       18

<PAGE>

6.2      TELKOM shall reimburse PARTNER for its prepayment of import VAT and
         income tax Article 22 on imports within twenty-one (21) Business Days
         after receipt of complete related claim documents from PARTNER. Customs
         duties are included in the Contract Value and will be paid by TELKOM in
         accordance with Articles 31 and 32. In the event a waiver is not
         forthcoming and sales tax on luxury goods is assessed against any
         Deliverables imported into Indonesia, the cost of such tax shall be
         added to the Contract Value and be paid by TELKOM in accordance with
         Articles 31 and 32.

6.3      PARTNER shall maintain complete and accurate inventory records of the
         movement of such equipment after importation into Indonesia in
         accordance with recognised industry practices and ensure that all
         equipment imported into Indonesia pursuant to any Purchase Orders shall
         be stored separately from all other equipment to facilitate inspections
         by Indonesian customs authorities. Any imposition of customs duties or
         penalties due to any act, default or omission of PARTNER in breach of
         this provision shall be borne by PARTNER.

6.4      PARTNER shall comply with the requirements of all local laws,
         regulations, and decrees and with the lawful requirements of other
         authorities in any way affecting any equipment, components or software
         procured under this Agreement.

6.5      PARTNER will 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.

                                       19
<PAGE>

ARTICLE 7. DELIVERY PROCEDURES

7.1      All physical deliveries of Deliverables covered by Purchase Orders
         shall be accompanied by a consignment note, which includes:

7.1.1    Name and registered office of PARTNER;

7.1.2    Purchase Order number;

7.1.3    Date of shipment and delivery;

7.1.4    Quantities included; and

7.1.5    Shipping documents (such as bill of lading or air way bills) and/or
         inland delivery documents.

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

7.3      TELKOM shall conduct a goods delivery inspection pursuant to Article
         55.5 on delivery of goods at the intended Location/Site.

7.4      PARTNER 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 the applicable Purchase Order in accordance with
         Appendix 9 (Implementation Schedule). PARTNER and shall be responsible
         for all inland transportation shipping costs to the intended
         Location/Site.

7.5      PARTNER represents and warrants that all equipment and components
         installed are type-approved by the relevant authorities in Indonesia
         and have passed quality assurance by TELKOM in accordance with the
         quality assurance guidelines set forth in Appendix 17 (Quality
         Assurance Guidelines/ Acceptance Test Procedures).

7.6      PARTNER shall be responsible for the provision and cost of any of the
         following facilities, equipment and services that

                                       20
<PAGE>

         may be required by PARTNER and its staff:

7.6.1    all locally engaged skilled and unskilled personnel, including
         electricians, wiremen, laborers, tradesmen, artisans, and their
         equipment and tools;

7.6.2    any work and/or entry permits, licenses, visas, etc., necessary for
         personnel employed or temporarily engaged by PARTNER and its
         sub-contractors, and any income taxes incurred by such personnel or
         corporate income taxes;

7.6.3    transportation (including, without limitation, to and from any
         Location/Site), housing and medical facilities for such personnel as
         may be necessary;

7.6.4    equipment, tools and other resources necessary for such personnel to
         complete the works;

7.6.5    telephone, telegram, telex, modem, internet and facsimile services;

7.6.6    security, warehousing, storage and office facilities; and

7.6.7    customs and/or excise duties on tools, equipment and personal effects
         of PARTNER staff.

ARTICLE 8. INTELLECTUAL AND INDUSTRIAL PROPERTY RIGHTS

8.1      PARTNER warrants:

8.1.1    that it has or will obtain prior to installation all Intellectual
         Property Rights necessary to enable PARTNER to meet its obligations
         under this Agreement; and

8.1.2    that the Contract Value includes all amounts paid or payable for the
         rights to use all Intellectual Property Rights embodied in the relevant
         System, and all equipment, components, software and Documentation
         forming a part of any Deliverables.

                                       21
<PAGE>

8.2      PARTNER shall grant or shall cause to be granted to TELKOM a
         royalty-free, irrevocable, non-transferable (except as set forth in
         this Article), non-exclusive and perpetual license or sub-license, as
         the case may be in the Republic of Indonesia to use the proprietary
         intellectual property (excluding source code) of PARTNER or its
         constituent members or any third party (including the employees or
         agents of PARTNER and any sub-contractors) to enable TELKOM to use such
         proprietary intellectual property in connection with the repair,
         maintenance, operation and use of the relevant System, Sub-systems,
         equipment, software, components and related Documentation to the extent
         contemplated by this Agreement.

8.3      PARTNER further warrants that the supply or undertaking of any item of
         the equipment, software, components, services and related
         Documentation, will not infringe (or cause TELKOM to infringe) any
         third party Intellectual Property Rights. PARTNER shall indemnify and
         hold harmless TELKOM at all times from all direct damages, costs and
         expenses arising from any claim or demand based on an allegation of
         such infringement. PARTNER shall, at the request of TELKOM, defend at
         PARTNER'S own cost any or all such claims or demands, provided TELKOM:

         (a)      gives PARTNER prompt written notice of such claim;

         (b)      permits PARTNER to defend or settle the claim;

         (c)      does not admit liability in respect of the whole or any part
                  of the claim or agrees to settle or dispose of the claim; and

         (d)      provides all reasonable assistance to PARTNER in defending or
                  settling the claim.

                                       22
<PAGE>

         This indemnity shall not apply where the liability arises:

         (a)      solely as a result of modifications to the Deliverables or
                  mandatory instructions made by TELKOM without the approval of
                  PARTNER;

         (b)      from the combination of the Deliverables with any equipment
                  not supplied by PARTNER, and if without TELKOM having made
                  that combination the claim of infringement would not have been
                  valid; the indemnification shall, however, be applicable if
                  PARTNER has provided the system integration services which
                  caused the infringement;

         (c)      use of the Deliverables by TELKOM other than as contemplated
                  in this Agreement;

         (d)      TELKOM'S continued use of the Deliverables after notification
                  by PARTNER of any modification or changes in the Deliverables
                  required to avoid infringement claims.

8.4      TELKOM agrees that it shall use the applicable license for software and
         Documentation pursuant to this Agreement only for its business
         purposes, and shall not market or otherwise commercialize it. The
         license for software and Documentation so granted shall authorize
         TELKOM to undertake all activities related to and/or as reasonably
         required for the intended use of the relevant equipment. The license1,
         for software and Documentation shall become effective at the latest
         upon TELKOM's issuance of the Integrated System Acceptance Test
         Certificate related to the applicable software and Documentation and
         shall be limited to the right to use the Documentation and software to
         operate the related equipment. TELKOM shall not assign, transfer or
         sub-license such software

                                       23
<PAGE>

         without the prior written consent of PARTNER, which consent shall not
         unreasonably be withheld or delayed.

8.5      TELKOM shall be entitled to make copies of the applicable software for
         back-up purposes only. TELKOM shall be entitled to make copies of
         software Documentation for internal use and for archival purposes, and
         when making permitted copies TELKOM shall transfer to the copy/copies
         any copyright or other marking on the software or related
         documentation. Use by TELKOM's affiliates in Project-related
         activities, shall be with PARTNER'S approval. TELKOM may not de-compile
         the software, except as permitted by law. Prior thereto, TELKOM shall
         provide PARTNER with reasonable advance written notice and an
         opportunity to provide the required interfacing information in lieu of
         TELKOM's exercising its rights to de-compile the software.

8.6      If, owing to the relevant equipment or its use, a right of a third
         party is infringed or an unlawful act is committed against a third
         party, PARTNER shall, at its own expense and in consultation with
         TELKOM:

8.6.1    replace the equipment or part of the equipment with equivalent
         equipment or parts of the equipment which do not infringe a right of a
         third party or whose use does not in any other way constitute an
         unlawful act against a third party; or

8.6.2    acquire a license in respect of the said right; or

                                       24
<PAGE>

8.6.3    modify the equipment in such a way that the infringement or unlawful
         act is terminated, provided that modification and/or replacement shall
         not cause the functionality and/or quality of the equipment to be
         materially reduced.

8.7      PARTNER and/or its sub-contractors shall provide TELKOM with the
         interface specification of the applicable software and with all
         Documentation and information in order to enable TELKOM to make
         external enhancements and/or modifications to the relevant equipment or
         add additional functionality to the equipment and/or to achieve
         interoperability and compatibility. PARTNER shall be relieved from its
         indemnification obligations to the extent the claim is caused by TELKOM
         enhancements and/or modifications.

8.8      If the central processing unit on which the applicable software is
         installed becomes temporarily unavailable, such software may be
         temporarily transferred to an alternative central processing unit. If
         TELKOM desires to use the software in a service bureau mode (i.e., to
         provide computing services to another supplier of similar services),
         TELKOM shall request a meeting with PARTNER in which the Parties shall
         discuss the required terms and conditions under which PARTNER would
         enter into a written agreement permitting such use.

8.9      The provisions of this Article 8 shall in substance be included in the
         BOT arrangements contemplated in Articles 28.10-28.14.

ARTICLE 9. FORCE MAJEURE

9.1      Neither Party shall be liable for delays in delivery or performance, or
         for failure to manufacture, deliver or perform when caused by any of
         the following which are beyond the reasonable control of the delayed
         Party, including but not limited to acts of God, acts of the public
         enemies, acts of civil or military authority, act of

                                       25
<PAGE>

         war, acts of terrorism, riots, strikes, lockouts, other labor
         disturbances, hurricanes, earthquakes, fires, floods or other natural
         disasters, epidemics and embargoes or a change to any government of
         Indonesia law, regulation, decree or government department policy
         having the force of law which has a material adverse impact on the
         ability of a Party to perform this Agreement.

9.2      Any occurrence belonging to a Force Majeure category shall be notified
         immediately to the other Party not later than fourteen (14) days after
         such occurrence. If an event of Force Majeure causes TELKOM to fail to
         pay any amounts due for a period of more than ninety (90) days, any of
         the Parties may terminate this Agreement. Any other event of Force
         Majeure continuing for a period in excess of 6 months shall entitle any
         of the Parties to terminate this Agreement.

9.3      In the event that due to Force Majeure the implementation of this
         Agreement or relevant agreement, acceptance test, integration, drive
         test or other matters provided for in this Agreement are suspended, the
         implementation period shall be extended by the numbers of days equal to
         the duration of such suspended implementation.

9.4      Neither Party shall be liable for any losses suffered by the other
         Party arising as a result of Force Majeure, provided that in the event
         of termination of this Agreement by PARTNER by reason of Force Majeure
         pursuant to Article 9.2, the provisions of Article 31 and Article 32
         shall apply with respect to losses involving Commissioned Deliverables
         and the provisions of Articles 14.4, 14.5 and 14.6 shall apply with
         respect to losses involving non-Commissioned Deliverables.

                                       26
<PAGE>

ARTICLE 10. TRANSFER OF RISK AND TITLE

10.1     The transfer of operational risk from PARTNER to TELKOM shall take
         place when the respective Deliverables have been installed, and the
         relevant Integrated System Acceptance Test Certificate has been issued
         by TELKOM.

10.2     Legal title and other rights to the relevant Deliverables shall only
         pass to or vest in TELKOM (i) at the time the related Integrated System
         Acceptance Test Certificate is issued for Deliverables procured in
         Indonesia, and (ii) on the high seas for Deliverables procured outside
         of Indonesia.

ARTICLE 11. INDEMNIFICATION

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

11.1.1   as a result of a failure by PARTNER to perform its obligations pursuant
         to this Agreement, Purchase Orders or other specific agreement related
         to these agreements;

11.1.2   in connection with the work carried out pursuant to its obligations
         under this Agreement, unless the occurrence of the damage is not
         attributable to PARTNER;

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

11.1.4   in connection with an infringement of any Intellectual Property Rights
         or industrial property right belonging to a third party in relation to
         Article 8.3;

                                       27
<PAGE>

11.1.5   in connection with any Claims including, without limitation, any fines
         or other penalties suffered by TELKOM as a result of the violation by
         PARTNER or any of its employees or agents of any laws or regulations in
         Indonesia related to Article 6;

11.1.6   in connection with any interruption to the Network under Article 57.4;

11.1.7   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 PARTNER, its employees,
         agents or sub-contractors;

11.1.8   loss or damage caused by the gross negligence or wilful act, fault or
         omission of PARTNER, its employees, agents or sub-contractors,
         including without any limitation any damage or interruption to TELKOM's
         existing Network during the migration to the new network to be provided
         by PARTNER; or

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

         Provided that TELKOM:

         (a)      gives PARTNER prompt written notice of such Claim;

         (b)      permits PARTNER to defend or settle the Claim;

         (c)      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

                                       28
<PAGE>

         (d)      provides all reasonable assistance to PARTNER in defending or
                  settling the Claim.

11.2     "Claims" shall mean any demands, claims, actions, liabilities, losses,
         damages awarded by a court or arbitration tribunal against TELKOM,
         costs (including legal and other professional costs), penalties and
         expense incurred by TELKOM as a result of a breach by PARTNER or any
         sub-contractor of any of its obligations, representations, undertakings
         or warranties under this Agreement.

11.3     Notwithstanding any provision of this Agreement to the contrary, the
         liability of PARTNER to TELKOM under this Agreement or at law shall in
         no circumstances exceed in any one case, an amount equal to 100% of the
         Contract Value of the relevant Purchase Order subject to In aggregate
         (after taking into account amounts previously paid under those clauses)
         an amount equal to 10% of the total Contract Value of all Purchase
         Orders which have been issued and accepted up to the date on which the
         liability falls due.

11.4     Neither Party shall in any circumstance be liable to the other for
         indirect or consequential losses or damages, whether or not such losses
         or damages are subject to this indemnity.

ARTICLE 12. EQUIPMENT MAINTENANCE AND SUPPORT

12.1     PARTNER undertakes that the Scope of Work will be executed in
         accordance with terms and any conditions of this Agreement and any
         Purchase Orders.

12.2     PARTNER warrants that all equipment and Network Systems and Sub-systems
         to be delivered to TELKOM are 100% (one hundred per cent) new, having
         no latent defect (excluding software latent defects which PARTNER has
         remedied upon discovery pursuant to the Service

                                       29

<PAGE>

         Level Agreement) and shall not have originated through unlawful
         procurement or manufacturing practices. PARTNER shall further undertake
         that all equipment (both hardware and software) delivered to TELKOM
         under this Agreement shall have a service life of at least ten (10)
         years from the date of issuance of the respective Integrated System
         Acceptance Test Certificate, or from the time the equipment is used
         commercially by TELKOM, whichever occurs first, provided that TELKOM
         has:

         (a)      materially complied with the terms of the SOP and SMP (as
                  referred to in Article 60.1.2); and

         (b)      not made any material modifications or changes to the
                  equipment (both hardware and software) delivered to TELKOM.

12.3     If, upon the expiry of any applicable SLA period, TELKOM requires
         maintenance assistance for the equipment from PARTNER, PARTNER agrees
         to carry out such maintenance including replacement of the same or
         comparable spare parts within the life time of the equipment as
         referred to in Article 12.2, with costs thereof as agreed at least
         ninety (90) days prior to the expiration of the applicable SLA.

12.4     PARTNER warrants that all equipment supplied to TELKOM is in accordance
         with Appendix 3 (Scope of Work) and Appendix 5 (Technical
         Specifications) and the execution of the works is in accordance with
         this Agreement and best practice standards as agreed by the Parties.

ARTICLE 13. LIQUIDATED DAMAGES FOR DELAY

13.1     PARTNER shall be deemed to have failed to perform an obligation under
         this Agreement for reasons for which it can be

                                       30
<PAGE>

         held responsible, if after the performance has become due and PARTNER
         has been given due notification of non-performance with a reasonable
         time allowance not exceeding thirty (30) days to rectify or correct the
         failure to perform condition, it has not fulfilled the obligation or
         has not fulfilled it in time or in accordance with what has been agreed
         upon. Without limitation, among other examples of delays by PARTNER are
         the following:

13.1.1   the Deliverables stated in the respective Purchase Order or specific
         agreement has not met the acceptance criteria at the agreed date on a
         per Location/Site basis;

13.1.2   the contracted equipment or software to be delivered is not available
         at the time and place committed by PARTNER in accordance with the terms
         and schedules of the respective Purchase Order, including without
         limitation where the delay results from damage or loss of goods during
         shipment;

13.2     PARTNER shall not be responsible to TELKOM for non-performance if the
         non-performance is a result of (i) late or non-performance of TELKOM,
         or the Investor pursuant to Article 28.10 or other Network equipment
         suppliers, or (ii) delays in acquiring land, provided PARTNER has been
         diligent and used its reasonable endeavours during the land acquisition
         process, it being agreed that the cost of the land acquisition process
         itself for which PARTNER is responsible shall not be a reason for
         PARTNER seeking to excuse its delayed performance. In such event,
         PARTNER shall be entitled to an appropriate extension of time for the
         performance of its obligations. PARTNER shall take all reasonable steps
         to minimize the impact of the delay and shall promptly notify TELKOM in
         writing, with supporting details, of the extension of time required.
         PARTNER's entitlement to extension of time shall be limited to the time
         which would have been due if it had given prompt notice and had taken
         all reasonable steps.

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<PAGE>

13.3     The liquidated damages for each day of delay shall be calculated on the
         basis of a percentage of the Contract Value specified in the respective
         Purchase Order related to the delayed Location in the amount of 6% per
         annum, up to a maximum of 5% of the said Contract Value in the
         applicable Purchase Order. For the avoidance of doubt, if non-
         performance is not remedied within the remedial period permitted under
         Article 13.1, or as otherwise agreed by the Parties, then liquidated
         damages shall be payable starting from the first day following the
         remedial period.

13.4     Liquidated damages assessed for delays in performance pursuant to
         Article 13 shall be without prejudice to any other non-financial claims
         TELKOM may have in respect of delays for which PARTNER is responsible.
         Subject to Article 11.3, these include without limitation, TELKOM's
         right: (i) to terminate this Agreement; and (ii) following discussions
         with PARTNER and acting reasonably with respect to the selection of a
         third party, to appoint the third party to continue this Agreement with
         respect to such works as may be able to be completed by third parties
         on condition that any excess amounts reasonably incurred for continuing
         such works as required shall be borne by PARTNER.

ARTICLE 14. TERMINATION OF THE AGREEMENT

14.1     If PARTNER is in material breach of any of its obligations under this
         Agreement, which failure is not capable of being cured, or if it can be
         cured, and PARTNER shall have failed to cure such default within thirty
         (30) days or an

                                       32
<PAGE>

         agreed lapse of time after written notice requiring that such default
         be made good (given either under this Article 14.1 or pursuant to
         Article 13.1 and 13.2), then TELKOM shall have the right, at its
         election and without prejudice to other rights and remedies provided in
         this Agreement to terminate this Agreement and recover damages from
         PARTNER.

14.2     TELKOM shall be entitled to terminate all or part of this Agreement,
         and/or all or part of the Purchase Orders and/or any related agreement
         upon any of the following events:

14.2.1   PARTNER's breach of the Interoperability Commitment Agreement;

14.2.2   PARTNER declares or clearly states that the Scope of Work, or any
         substantial part thereof, will not or cannot be completed;

14.2.3   PARTNER takes or has taken or instituted against it any action or
         proceeding, whether voluntary or compulsory, which has as an object or
         may result in the winding up of PARTNER (other than a voluntary winding
         up by members for the purpose of reconstruction or amalgamation), or is
         placed under official management or enters into a compromise or other
         arrangement with its creditors or any class of them or an
         administrative receiver or an administrator or receiver is appointed to
         carry on its business or to take control or possession of any of its
         assets for the benefit of its creditors or any of them;

14.2.4   PARTNER violates any law relating to the prevention of corruption or
         bribery in PARTNER's home country or any jurisdiction in which PARTNER
         is carrying out any of the works; or

14.2.5   The Parties have been unable to agree mutually acceptable financing
         arrangements for the Project pursuant to Article 35.1.

                                       33
<PAGE>

14.3     PARTNER shall not be entitled to terminate or abandon this Agreement
         except in the event that:

14.3.1   TELKOM takes or has taken or instituted against it any action or
         proceeding, whether voluntary or compulsory, which has as an object or
         may result in the winding up of TELKOM (other than a voluntary winding
         up by members for the purpose of reconstruction or amalgamation), or is
         placed under official management or enters into a compromise or other
         arrangement with its creditors or any class of them or an
         administrative receiver or an administrator or receiver is appointed to
         carry on its business or to take control or possession of any of its
         assets for the benefit of its creditors or any of them; or

14.3.2   TELKOM fails to pay any amounts due, or becomes unable to pay amounts
         to become due, for a period of more than six (6) months and during
         discussions with TELKOM during such period the Parties cannot agree on
         a satisfactory mechanism for payment and/or security for payments owed,
         including establishment of an escrow account or the provision of a bank
         guarantee by TELKOM acceptable to PARTNER. For the avoidance of doubt,
         if termination occurs under Article 14.3.1 at the end of the period
         contemplated in Article 35.1, then in such circumstances all amounts
         owed to PARTNER shall become due and payable; or

14.3.3   TELKOM, without PARTNER's prior written approval: (i) transfers or
         assigns the license for software and Documentation granted in Article
         8, or (ii) transfers PARTNER's proprietary software outside the
         Republic of Indonesia, or (iii) commercializes or manufactures the
         applicable software, equipment and Documentation, or (iv) uses the
         Deliverables in a manner not permitted in this Agreement, or (v)
         encumbers PARTNER's Intellectual Property Rights.

                                       34
<PAGE>

14.4     Termination of this Agreement shall be without prejudice to any accrued
         rights of the Parties up to the date of termination.

14.5     The termination of this Agreement or other specific agreement shall not
         affect or prejudice any provisions of those agreements which are
         expressly or by implication provided to continue in effect after such
         termination.

14.6     If this Agreement is terminated as provided in this Article 14, TELKOM,
         in addition to any other rights provided in this Article, may require
         PARTNER to transfer title and to deliver to TELKOM in the manner and to
         the extent directed by them upon full payment, any completed equipment,
         material or supplies, and such partially completed cable and materials,
         parts, tools, dies, jigs, fixtures, plans, drawings, information, and
         contract rights as PARTNER has had specifically produced or
         specifically acquired for the performance of such part of this
         Agreement as may have been terminated and which if this Agreement had
         been completed, would have been required to have been furnished to
         TELKOM. In addition, PARTNER shall, upon the direction of TELKOM,
         protect and preserve property in its possession in which TELKOM has an
         interest. PARTNER shall be paid the prices specified in Appendix 4
         (Price Schedule) for completed equipment, material and supplies
         delivered and services performed, and the amounts agreed upon by TELKOM
         and PARTNER for the manufacturing materials delivered to TELKOM by
         PARTNER, and for the protection and preservation of property in which
         TELKOM has an interest.

14.7     If this Agreement is terminated in accordance with Article 14.2, TELKOM
         may elect to take over and to complete the work. In such event,
         PARTNER, shall, without prejudice to any other rights or remedies of
         TELKOM hereunder, be liable to TELKOM for all costs so incurred by them
         taking into account any sums due under this Agreement to PARTNER for
         work commenced, partly executed or

                                       35
<PAGE>

         completed and accepted by TELKOM or materials, plant, machinery, tools
         and implements and other things purchased, used or to be used in
         connection with the work.

14.8     In the event of termination, the Parties agree to waive the provisions
         of Article 1266 of the Indonesian Civil Code to the extent necessary to
         effect termination of this Agreement in accordance with Article 14
         without the need for a court decision.

ARTICLE 15. GOVERNING LAW

         This Agreement shall be interpreted and governed in accordance with the
         laws of the Republic of Indonesia.

ARTICLE 16. SETTLEMENT OF DISPUTES

16.1     If any disputes arising between TELKOM and PARTNER in connection with
         or arising out of this Agreement or the breach, termination of validity
         thereof (a "Dispute"), the Parties shall attempt for a period of thirty
         (30) days after receipt by one Party of a notice from the other Party
         of the existence of the dispute, to settle such Dispute in the first
         instance by mutual discussions between senior executives of the
         Parties.

16.2     Any Dispute which cannot be resolved by amicable settlement between the
         Parties arising out of or in connection with this Agreement, including
         any question regarding its existence, validity or termination, shall be
         referred to and finally resolved by arbitration in Singapore in
         accordance with the Arbitration Rules of the Singapore International
         Arbitration Centre ("SIAC") for the time being in force which rules are
         deemed to be incorporated by reference to this clause.

                                       36
<PAGE>

16.3     The arbitration shall be conducted before an arbitral tribunal composed
         of three (3) arbitrators. The language of the arbitration shall be
         English.

16.4     The three (3) person arbitration panel shall be selected as follows:

         (a)      each arbitrator shall be fluent in English and shall be
                  experienced with legal matters concerning the
                  telecommunications industry.

         (b)      each of (A) the Party initiating the arbitration and (B) the
                  respondent Party or Parties to the Dispute shall nominate one
                  (1) arbitrator within thirty (30) days of the written notice
                  of the Dispute described above. The relevant Parties shall
                  within (30) days of the appointment of the two (2) arbitrators
                  seek to appoint a third arbitrator. If any relevant Party does
                  not nominate an arbitrator or if the relevant Parties cannot
                  agree on the choice of the third arbitrator, in each case
                  within the relevant period, then each unappointed arbitrator
                  shall be selected by the Chairman of the SIAC (provided that
                  the requirements in Article 16.4(a) are satisfied).

16.5     The award rendered shall be in writing and shall set out the facts of
         the Dispute and the reasons for the arbitration panel's decision. The
         award shall apportion the costs of the arbitration as the arbitration
         panel deems fair.

16.6     The Parties agree that the arbitration award shall be final and binding
         on the Parties. The Parties agree that no Party shall have any right to
         commence or maintain any suit or legal proceedings until the Dispute
         has been determined in accordance with the arbitration procedure
         provided herein and then only for enforcement of the award rendered in
         the arbitration. Judgment upon the arbitration award may be rendered in
         any court of competent jurisdiction or application may

                                       37
<PAGE>

         be made to such court for a judicial acceptance of the award and an
         order of enforcement, as the case may be.

16.7     Each of the Parties hereby expressly waives any Indonesian laws and
         regulations, decrees or policies having the force of law that would
         otherwise give a right to appeal against the decision of the
         arbitration panel, and the Parties agree that no Party shall appeal to
         any court against the award or decision contained therein. The Parties
         agree that any dispute in connection with or arising out of this
         Agreement or the breach, termination of validity thereof under is of a
         commercial nature.

16.8     Each of the Parties waives the applicability of Article 48(1) of the
         Indonesian Law on Arbitration and Alternative Dispute Resolution (the
         "Arbitration Law") and agrees that no arbitration need be completed
         within a specific time. For purposes of Article 5 paragraph 1 of the
         Arbitration Law, the Parties agree that the relationship among the
         Parties is commercial in nature and any Dispute related to this
         Agreement shall be deemed commercial.

16.9     No Party or person involved in any way in the creation, coordination or
         operation of the arbitration of any Dispute may disclose the existence,
         content or results of the Dispute or any arbitration conducted under
         this Agreement in relation to that Dispute, in each case subject to
         those disclosures permitted by Article 19.

16.10    This Agreement and the rights and obligations of the Parties shall
         remain in full force and effect pending the award in such arbitration
         proceeding, which award, if appropriate shall determine whether and
         when only termination shall become effective. The provisions contained
         in this Article 16 shall survive the termination and/or expiration of
         this Agreement.

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<PAGE>

ARTICLE 17. LANGUAGE

17.1     All data, documents, Purchase Orders, invoices, descriptions, diagram,
         books, catalogues, instructions, marking for easy identification of
         major items of the material and most correspondence shall be in the
         English language and in the metric system of weights and measures.

17.2     PARTNER's personnel shall be proficient in English both written and
         spoken, for the purpose of providing instruction, offering advisory
         services, training and any other submission as required.

17.3     This Agreement is concluded in both English and Bahasa Indonesia. In
         the event of any inconsistency or contradiction between the Bahasa
         Indonesia and English texts, the Bahasa Indonesia text shall govern and
         prevail.

ARTICLE 18. CORPORATE REPRESENTATIONS AND WARRANTIES

18.1     Each Party (including each constituent member of PARTNER) represents
         and warrants that (i) it has obtained all necessary approvals, consents
         and authorizations of third parties and governmental authorities to
         enter into this Agreement and to perform and carry out its obligations
         under it; (ii) the persons executing the Agreement on its behalf have
         express authority to do so, and, in doing so, to bind the party to it;
         (iii) the execution, delivery, and performance of this Agreement does
         not violate any provision of any bylaw, charter, regulation, or any
         other corporate governing authority of the Party; (iv) the execution,
         delivery and performance of the Agreement has been duly authorized by
         all necessary corporate action; (v) the execution, delivery and
         performance by it of this Agreement constitute private and commercial
         acts rather than public or governmental acts; and (vi) the obligations
         of the Parties under the Agreement are valid and binding obligations of
         such Party, enforceable in accordance with its terms.

                                       39
<PAGE>

ARTICLE 19. CONFIDENTIAL INFORMATION

19.1     TELKOM and PARTNER shall enter into a Non-Disclosure Agreement in the
         form set out in Appendix 24 (Non-Disclosure Agreement) which details
         the terms and conditions related to permitted uses and disclosures of
         confidential information in the development (if applicable), operation,
         use and maintenance of the relevant Systems in the T-21 Program.

ARTICLE 20. NOTICE

20.1     All notifications required or permitted under this Agreement shall be
         sufficiently given if made in writing and delivered personally by hand
         or by courier or sent by prepaid registered post or by facsimile to the
         addresses of the Parties as from time to time notified.

20.2     All notification required in connection with the implementation of this
         Agreement shall be addressed as follows:

         To TELKOM:
         Perusahaan Perseroan (Persero) PT
         Telekomunikasi Indonesia Tbk.
         Jl. Japati No. 1, Bandung 40133
         Attention: President Director
         Fax : (022)440-313
         E-mail: kristiono@telkom.co.id

         To PARTNER:
         PT Ericsson Indonesia
         Wisma Pondok Indah, 10th Floor
         Jl. Sultan Iskandar Muda VTA
         Jakarta 12310, Indonesia
         Attention: President Director
         Fax: (021) 750-1482
         E-mail : ulf.mansson@eid.ericsson.se

20.3     PARTNER shall appoint a point of contact or designated representative
         authorized to act on behalf of PARTNER, and whose instructions and
         requests shall be binding for PARTNER as to all

                                       40
<PAGE>

         matters pertaining to implementation of the Project brought to his
         attention by TELKOM. TELKOM shall also appoint a point of contact or
         designated representative authorized to act on behalf of TELKOM as to
         all matters pertaining to implementation of the Project. The initial
         point of contact for each Party is listed below:

         PARTNER's Point of Contact:
         General Manager, TELKOM Account
         PT Ericsson Indonesia
         Wisma Pondok Indah, 10th Floor
         Jl. Sultan Iskandar Muda VTA
         Jakarta 12310, Indonesia
         Tel: (021) 769-2222
         Fax: (021) 750-1482
         Email: bintang.juliarso@eid.ericsson.se

         TELKOM's Point of Contact:
         Head of Fixed Wireless Division (as
         Project Manager)
         Jalan Kebon Sirih, Kav. 12
         Jakarta
         Indonesia
         Tel:    (021)385-7777
         Fax:    (021)344-0707
         E-mail: alex is@telkom.co.id
         Mobile: 0811-965500

20.4     A Party may change its address by giving prior written notice to the
         other Party. Notices and other communications may be in the Indonesian
         or English language. All notices shall be effective (i) in the case of
         delivery by personal delivery or courier, on the date of receipt as
         evidenced by a delivery receipt from the recipient or confirmation of
         delivery received by the sender from the courier, and (ii) in the case
         of transmission by facsimile transmission or electronic mail or other
         electronic transmission, on the date of receipt as promptly
         acknowledged by the recipient, failing which acknowledgement then on
         the date of such transmission as evidenced by the convention applicable
         to such transmission.

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<PAGE>

ARTICLE 21. GENERAL PROVISIONS

21.1     If any provision of this Agreement or part 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.
         The invalidity, illegality or unenforceability of any provision in this
         Agreement under the laws of any one jurisdiction shall not in itself
         affect the validity, legality and enforceability of such provision
         under the laws of any other jurisdiction.

21.2     No remedy conferred by any of the provisions of this Agreement is
         intended to be exclusive of any other remedy that is otherwise
         available at law or otherwise, and each and every other remedy shall be
         cumulative and shall be in addition to every other remedy given
         hereunder or now or hereafter existing at law or otherwise. The
         election of any one or more of such remedies by either Party shall not
         constitute a waiver by such Party of the right to pursue any other
         available remedies.

21.3     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. The rights and remedies provided in this Agreement are
         cumulative and not exclusive of any right or remedy provided by law.

21.4     This Agreement embodies all the terms and conditions agreed upon
         between the Parties as to the subject matter of this Agreement, and
         supersedes all prior representations, arrangements,

                                       42
<PAGE>

         understandings and agreements between the Parties whether written or
         oral (including without limitation, the RfP, except as provided
         otherwise under this Agreement).

21.5     This Agreement may be executed in any number of counterparts, each of
         which shall constitute an original and take effect without reference to
         any other counterpart, and together the counterparts shall be deemed as
         one and the same agreement.

21.6     Notwithstanding the reference to the terms "partner" and/or
         "partnership" in this Agreement, the relationship between the Parties
         shall not constitute a legal partnership. Neither Party has the power
         or the right to bind, commit or pledge the credit of the other Party.

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

21.8     The main body of this Agreement may only be amended by a written
         instrument duly executed by all Parties.

CHAPTER 2.  COMMERCIAL TERMS AND CONDITIONS

ARTICLE 22. CONTRACT VALUE

22.1     Based on the unit prices referred to Article 23.3, the initial Contract
         Value (excluding any VAT) for execution of the Project under this
         Agreement (not including SLA) is US$57,450,007.00 (primarily for goods
         and services purchased outside Indonesia) and IDR 170,453,021,626.00
         (primarily for goods and services procured within Indonesia). This
         Contract Value may be adjusted from time to time in accordance with
         mechanism provided in Article 27.

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<PAGE>

ARTICLE 23. PRICES, FEES

23.1     The prices, and fees as listed under Appendix 4 (Price Schedule) are
         the agreed prices and applicable to the relevant Purchase Orders. Such
         prices and fees shall be deemed to include all costs, expenses and
         import/customs duties which are deemed necessary to carry out this
         Agreement, but excluding any VAT, income tax (Article 22) on imports
         and sales tax on luxury goods.

23.2     The prices and fees payable by TELKOM under this Agreement shall be
         denominated in United States of America Dollars (USD) or in Indonesian
         Rupiah (IDR) as applicable. PARTNER shall quote all goods and services
         procured within Indonesia in Indonesian Rupiah (IDR) and goods and
         services purchased outside Indonesia in United States dollars, as
         applicable. All payments made under or pursuant to this Agreement by
         TELKOM shall be made in the currency specified. In the event that any
         such payments are unable to be made in the currency specified for
         whatsoever reason, then at the option of PARTNER such payments may be
         made by TELKOM by payment of an equivalent amount (at the then
         prevailing exchange rates) of such other currency as is permissible. If
         so requested by PARTNER, TELKOM shall pay the relevant amount in the
         name of PARTNER or a third party designated by PARTNER at a bank within
         Indonesia.

23.3     Unit prices quoted in Appendix 4 (Price Schedule) 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 PARTNER for all
         costs of freight, insurance, import/customs duties, clearance at the
         port of entry, inland transportation, warehousing and delivery to the
         Location/Site where the equipment is 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,

                                       44
<PAGE>

         services related to land acquisition, frequency licence application
         services and all related materials and expenses to complete the Project
         on a turnkey basis as contemplated in Article 3. Import/customs duties
         are included in the unit prices set out in Appendix 4 (Price Schedule)
         and shall remain fixed. Variations in unit price shall only be subject
         to change if specifically agreed upon by the Parties pursuant to a
         Change Request.

ARTICLE 24. TAXES AND DUTIES

24.1     The Contract Value excludes any VAT, sales tax on luxury goods, and
         income tax (Article 22) on imports), but includes import/customs duties
         imposed by the government of Indonesia on the Deliverables in
         connection with the Project. Each Party shall be responsible for all
         taxes which it is required to pay, withhold or collect as the case may
         be, in accordance with prevailing laws and regulations, it being
         acknowledged by PARTNER that in relation to VAT administration TELKOM
         is a designated VAT collector under applicable regulations.

ARTICLE 25. INSURANCE AND SAFETY

25.1     PARTNER shall at its own expense take out an all risk insurance policy
         ("All Risk Policy") to cover any works to be carried out pursuant to
         any Purchase Order. The insurance shall cover all risks against losses,
         damages (including accidents caused by the work performed by PARTNER
         its employees, agents or sub-contractors) at a minimum until the
         transfer of title to the relevant Deliverables pursuant to Article
         10.2. The All Risk Policy shall also cover any plant, machinery, tools,
         goods, vehicles or property belonging to PARTNER, its employees, agents
         or sub-contractors which have been placed at any relevant Location/Site
         where any works are being executed, all risks during transportation,
         warehousing, storage, delivery, installation and testing, whether by
         fire, theft, earthquake/flood, natural disaster,

                                       45
<PAGE>

         consequence of fault in construction, or otherwise, and legal liability
         to third parties during construction, installation and operation
         periods including loss of revenue insurance and damage to surrounding
         property. PARTNER shall provide evidence of this All Risk Policy to
         TELKOM upon request.

25.2     PARTNER shall at its own expense replace any loss, damaged and/or
         destroyed equipment, components and software while such are in the
         process of being delivered and installed.

25.3     Notwithstanding the procurement of an All Risk Policy, PARTNER's
         liability in respect of loss or damage attributable to the acts,
         omission or negligence of PARTNER shall not be limited to the amount of
         the insurance coverage under the All Risk Policy.

25.4     PARTNER shall take full responsibility for the adequacy, stability and
         safety of all works carried out at the relevant Locations/Sites in
         accordance with the provisions of any law, order, regulation, decree,
         directive or standards now or hereinafter in force in Indonesia.
         PARTNER shall ensure that all equipment, tools, facilities and other
         items used by PARTNER or its sub-contractor in the execution of the
         works shall be safe, sound, in good working condition which shall, at a
         minimum, conform to acceptable standards in the industry. PARTNER shall
         at its own expense provide the necessary safety equipment, protective
         clothing, footwear and such other appliances as may be necessary or
         required by law or regulation for proper and safe execution of the
         works. PARTNER shall ensure that all personnel provided are fully
         trained and qualified and properly certified by the relevant
         authorities or bodies if such certification is required under the

                                       46
<PAGE>

         applicable laws, rules or regulations or directive of any governmental
         body.

CHAPTER 3.  FINANCIAL TERMS AND PAYG

ARTICLE 26. JOINT PLANNING SESSIONS, DESIGN REVIEW MEETINGS AND MONTHLY MEETINGS

26.1     Joint Planning Session or JPS

26.1.1   The Parties agree to conduct systematic, periodic and comprehensive
         joint planning exercises as described below.

26.1.2   TELKOM and PARTNER shall conduct annual Joint Planning Sessions ("JPS")
         in October or November at the end of each Fiscal Year to plan for the
         following Fiscal Year's Package Level Requirements. The first of these
         JPSs shall be conducted at a time to be mutually determined after the
         Parties have executed this Agreement and shall cover the period
         immediately following the execution of this Agreement up to the end of
         Fiscal Year 2003. The JPS may also be convened at such other times as
         the Parties may agree. TELKOM and PARTNER shall jointly conduct and/or
         agree on at least the following activities as applicable to the
         following Fiscal Year:

         (a)      demand forecasting (which in this Agreement shall refer to a
                  minimum of one (1) year time horizon) at a national level
                  considering various macro economic factors;

         (b)      economic analysis to assess the business feasibility of
                  deploying the intended Network; and

         (c)      development of the details of the Deployment Plan and
                  Implementation Schedule on a quarterly basis with
                  prioritization of Locations for Network deployment.

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<PAGE>

26.1.3   At each subsequent JPS, TELKOM and PARTNER shall conduct jointly and/or
         agree on at least the following activities as applicable to the
         following Fiscal Year:

         (a)      demand forecasting at a national level considering various
                  macro economic factors;

         (b)      economic analysis to assess the business feasibility of
                  deploying the intended Network;

         (c)      development of details of the Deployment Plan and
                  Implementation Schedule on a quarterly basis with
                  prioritization of Locations for Network deployment;

         (d)      review of future technology deployment strategies, considering
                  availability and suitability of the latest technologies,
                  equipment or software; and

         (e)      resolve issues referred to it by a DRM or otherwise and agree
                  on corrective actions.

26.1.4   PARTNER shall take responsibility for the organizational and
         administrative activities required to convene the JPSs. PARTNER shall
         be responsible for all reasonable costs of convening the JPS and shall
         fund at its own expense the cost of external consultants in performing
         any of the work or analyses contemplated under Article 26.1. TELKOM
         shall only be responsible for the costs of providing accommodations and
         transport for TELKOM staff attending a JPS.

26.1.5   The Parties shall produce minutes of the JPS meetings in which any
         substantive agreements shall be recorded as agreements of the Parties,
         as evidenced by signature of the minutes (or the applicable sections
         thereof) by the authorized representative of each Party.

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<PAGE>

26.1.6   At each JPS and subject to either or both Parties first reporting
         unresolved issues to the respective senior executives of each Party for
         consideration, TELKOM shall be entitled to make the final decisions on
         such matters as revision of the Deployment Plan and adjustments to the
         calculation of Installed Lines Procurements, after taking into account
         PARTNER's inputs concerning, among others, demand forecasts, market
         outlook and take-up of the capacity deployed.

26.2     Design Review Meeting or DRM

26.2.1   TELKOM and PARTNER shall conduct systematic, periodic and comprehensive
         Design Review Meetings ("DRM") on a quarterly basis at a DIVRE level
         throughout the term of this Agreement.

26.2.2   The first DRM shall be conducted within ten (10) Business Days after
         the first JPS or within such timeframe agreed at the first JPS.
         Thereafter, DRMs are intended to be held at the end of each Quarter
         with an agenda which looks forward to the contemplated activities of
         the following Quarter.

26.2.3   Before the first DRM, TELKOM and PARTNER jointly shall conduct at least
         the following activities:

         (a)      survey the planned deployment Location/Site(s) to ensure the
                  readiness of the Location/Site(s);

         (b)      calculate Installed Line Procurements (reasonably relating to
                  Subscriber Targets) required by Location and Site (BTS);

         (c)      based on the Subscriber Targets, develop a detailed network
                  design, agree and approve the detailed BoQ and the value of
                  the detailed BoQ by Location and Site (BTS);

                                       49
<PAGE>

         (d)      develop a detailed resource plan;

         (e)      develop a detailed training plan; and

         (f)      update the Deployment Plan for the next Quarter if necessary.

26.2.4   At the first DRM, TELKOM and PARTNER Jointly shall conduct and/or agree
         on at least the following activities:

         (a)      check and update the calculation of Installed Line
                  Procurements (reasonably relating to Subscriber Targets) by
                  Location and Site (BTS);

         (b)      based on the Subscriber Target, agree and approve the detailed
                  Network design;

         (c)      based on the Subscriber Target, agree and approve the detailed
                  BoQ and the total value of the detailed BoQ by Location and
                  Site (BTS);

         (d)      agree and approve the detailed resource plan;

         (e)      agree and approve the detailed training plan;

         (f)      agree and approve adjustments, if any, to the Project
                  Management Plan and the Implementation Schedule; and

         (g)      agree and approve the updated Deployment Plan for the
                  following Quarter if necessary.

26.2.5   Following the first DRM and after each subsequent DRM, TELKOM shall
         promptly issue Purchase Order(s) signed by the TELKOM Project Manager
         or other person authorized by TELKOM based on the results of the
         related DRM.

26.2.6   With respect to the quarterly DRM which coincides with a JPS each
         fiscal year, the DRM shall be convened immediately after

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         the completion of such JPS, with an agenda which is designed not to
         repeat or duplicate JPS activities in such DRM, unless necessary.

26.2.7   Before each subsequent DRM, TELKOM and PARTNER jointly shall conduct
         and/or agree on at least the following activities:

         (a)      survey the planned deployment Location/Site(s) to ensure the
                  readiness of the Location/Site(s), to assess the demand;

         (b)      update the Deployment Plan for that Quarter by calculating the
                  Installed Line Procurement (reasonably relating to Subscriber
                  Targets) required by Location and Site (BTS);

         (c)      based on the Subscriber Targets, develop a detailed Network
                  design, a detailed BoQ and the total value of the detailed BOQ
                  by Location and Site (BTS);

         (d)      develop a detailed resource plan;

         (e)      develop a detailed training plan; and

         (f)      assess market demand and update deployment plan for the
                  following Quarter if necessary.

26.2.8   At each subsequent DRM, TELKOM and PARTNER jointly shall conduct and/or
         agree on at least the following activities for the following Quarter:

         (a)      check and update the calculation of Installed Line
                  Procurements (reasonably relating to Subscriber Targets) by
                  Location and Site (BTS);

         (b)      based on the Subscriber Target, agree and approve the detailed
                  Network design;

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         (c)      based on the Subscriber Target, agree and approve the detailed
                  BoQ and the total value of the detailed BoQ by Location and
                  Site (BTS);

         (d)      agree and approve the detailed resource plan;

         (e)      agree and approve the detailed training plan;

         (f)      agree and approve adjustments, if any, to the Project
                  Management Plan and Implementation Schedule;

         (g)      evaluate performance of the Project in the previous Quarter
                  and revise implementation procedures to take account of
                  failures or other unsatisfactory performance;

         (h)      agree and approve the updated Deployment Plan for the
                  following Quarter if necessary; and

         (i)      resolve issues referred to it by a monthly meeting or
                  otherwise and agree on corrective actions.

26.2.9   PARTNER shall take responsibility for the organizational and
         administrative activities required to organize all DRMs. PARTNER shall
         be responsible for all reasonable costs of convening the DRM and shall
         fund at its own expense the analysis contemplated under Article 26.2.
         TELKOM shall only be responsible for the costs of providing
         accommodations and transport for TELKOM staff attending a DRM.

26.2.10  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 (or the applicable section thereof) by the
         authorized representative of each Party.

26.2.11  The following additional agreements apply to the DRMs:

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         (a)      TELKOM and PARTNER jointly will design and calculate the exact
                  BoQ to support the intended number of Subscriber Targets based
                  on the design rules in Appendix 14 (Technical and Engineering
                  Norms);

         (b)      the design rules in Appendix 14 (Technical and Engineering
                  Norms) are based on technical and engineering norms current at
                  the date of this Agreement and may be adjusted by written
                  agreement of the Parties during the planning process based on
                  the evolution of the market to avoid any over or under-
                  estimation of the equipment required;

         (c)      in case there are any major issues that need urgent attention
                  or cause any significant deviation from the original
                  Deployment Plan, PARTNER shall bring it to the attention of
                  TELKOM and, if mutually agreed, promptly convene a special DRM
                  to address such issues;

         (d)      if necessary, any activities mandated by a JPS meeting may be
                  executed in conjunction with a DRM meeting;

         (e)      in the event that terms of a particular Purchase Order are
                  inconsistent with agreements reached in a DRM, the Parties
                  shall review and if necessary amend any mistakes or
                  discrepancies in the Purchase Order or BoQ;

         (f)      At each DRM, decisions on such matters as revision of the
                  Deployment Plan and calculation of Installed Line
                  Procurements, shall be mutually agreed by the Parties after
                  taking into account all inputs of both Parties concerning,
                  among others, demand forecasts, market

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                  outlook, equipment production capacity, and take up of the
                  capacity deployed; and

         (g)      TELKOM and PARTNER agree that the Deployment Plan for the
                  following Quarter for a particular Location shall be
                  calculated based on Installed Line Procurements that
                  realistically can be provisioned within a period of a minimum
                  of three (3) years if new common equipment is deployed, and a
                  minimum of one (1) year for each module such as racks,
                  sub-racks and cards.

         If the Parties cannot reach agreement at a DRM on matters such as the
         terms of a particular Purchase Order or other critical issue, the
         matter shall be referred to senior management of each Party for
         resolution.

26.3     Monthly Meetings

26.3.1   PARTNER through its authorized representatives shall conduct monthly
         meetings with the relevant TELKOM staff in the Location to be developed
         to ensure smooth execution of Project operations and to raise and
         discuss issues in a timely manner.

26.3.2   The first of these meetings will be conducted at a time to be mutually
         determined after the first DRM has been conducted. Thereafter, these
         meetings shall be held on a monthly basis throughout the term of this
         Agreement.

26.3.3   At each monthly meeting, PARTNER shall be responsible for at least the
         following activities: preparation of progress reports from site
         managers, site supervisors, and other staff to the TELKOM Project
         Manager or his authorized representative, updates on any relevant
         developments, and discussion of any problems or unresolved issues
         arising in the previous month.

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26.3.4   Monthly meetings may be held anywhere at such times and places as
         mutually convenient to the Parties.

26.4     Representation at JPS, DRM and Monthly Meetings.

26.4.1   TELKOM and PARTNER 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
         JPS and/or DRM and/or monthly meeting on their behalf.

26.4.2   Agreements of the Parties reached at a JPS and/or DRM and/or monthly
         meeting shall be signed by authorized representatives of each of the
         Parties as notified to each other from time to time.

ARTICLE 27. INSTALLED LINE PROCUREMENTS

27.1     The planned number of lines to be installed in each Quarter (the "Base
         Line") as set out in Appendix 7 (Deployment Plan) shall be used as a
         fixed number from which to calculate the amount by which planned
         Installed Line Procurements can be adjusted from time to time at a DRM
         or JPS in accordance with the flexible procurement methodology
         contemplated in this Article 27.

27.2     Based on the Deployment Plan for the following Quarter, the calculation
         of Installed Line Procurements contemplated in the following Quarter
         will be adjusted in accordance with the following formula:

         Installed Line Procurements = Base Line x (1+ Percentage Index)

27.3     The Percentage Index shall be 0% for the first Quarter. For subsequent
         Quarters, TELKOM may at its sole discretion vary the Percentage Index
         by a maximum of

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<PAGE>

         15%, up or down, from the Percentage Index adopted for the previous
         Quarter, i.e., the Percentage Index = Percentage Index for the previous
         Quarter +/- 15%, provided that over the term of this Agreement, the
         minimum Installed Line Procurements shall be 60% of the total
         cumulative Base Line.

27.4     The Parties may also agree to change the Percentage Index by more than
         15% for a particular Quarter, provided that for purposes of calculating
         the applicable maximum limits of the Percentage Index for the following
         Quarter, the Percentage Index for the previous Quarter will be deemed
         to have been varied by a maximum of 15% only, and the Percentage Index
         for the following Quarter calculated from that limit rather than from
         the actual Percentage Index of the previous Quarter in which the
         applicable maximum limits were exceeded.

27.5     For the avoidance of doubt, once the commitment volumes set forth in
         Article 27.3 have been reached, TELKOM shall have no further commitment
         to increase the Installed Line Procurements.

ARTICLE 28. PURCHASE ORDERS AND PROCEDURES

28.1     PARTNER shall deliver all Deliverables to TELKOM in response to
         Purchase Orders issued by TELKOM from time to time, generally on a
         quarterly basis in conjunction with a DRM.

28.2     TELKOM through the TELKOM Project Manager (preferably) or other
         authorized TELKOM representative and/or authorized BOT representatives
         agreed by the Parties (for particular geographical areas as notified in
         writing by TELKOM from time to time) will issue Purchase Orders based
         on deployment at a particular DIVRE level.

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<PAGE>

28.3     A Purchase Order will be valid only if it is: (a) made in writing in
         the form set out in Appendix 12 (Purchase Orders), and (b) signed by
         the TELKOM Project Manager or his designated representative, and (c)
         accompanied by a promissory note and documentary credit which complies
         with Article 28.15.

         Each Purchase Order shall include necessary and appropriate attachments
         to clearly describe:

28.3.1   Subscriber Target numbers defined per Location and Site (BTS);

28.3.2   Value of Purchase Order defined per Location and Site (BTS);

28.3.3   Local Content items and value;

28.3.4   Project Locations/Site;

28.3.5   Detailed Network Design;

28.3.6   Detailed BoQ; and

28.3.7   The overall Implementation Schedule and the breakdown for each
         Location.

28.4     The Subscriber Target for a Purchase Order shall be the Installed Line
         Procurement for the DIVRE/Location for the relevant Quarter based on
         the Deployment Plan as updated and determined at the related DRM.

28.5     The Subscriber Recorder is TELKOM's database system in the NSS/MSC in
         the related DIVRE.

28.6     Within five (5) Business Days from receipt of a Purchase Order, PARTNER
         through its authorized representative shall either:

28.6.1   accept the Purchase Order by countersigning on the space provided on
         the Purchase Order or a copy thereof and returning the same to TELKOM
         by way of facsimile, followed by mail or hand delivery or by courier.
         Countersigning of the Purchase Order by authorized representatives of
         PARTNER shall be deemed to constitute acceptance of the

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<PAGE>

         Purchase Order without conditions by PARTNER and any terms and
         conditions accompanying such acceptance shall be null and void; or

28.6.2   notify TELKOM by way of facsimile, followed by mail or hand delivery or
         by courier that the Purchase Order has not been accepted.

         PARTNER shall be entitled to refuse to accept a Purchase Order if: (a)
         the Purchase Order is incomplete or does not have the required
         attachments; or (b) the Purchase Order does not reflect the decision of
         the relevant DRM; or (c) the total of the aggregate amount owing to
         PARTNER by TELKOM as at the date of receipt of the Purchase Order in
         respect of Deliverables invoiced by PARTNER pursuant to Article 31.4
         exceeds the amount of US$25,000,000 during any of the first three (3)
         years of this Agreement.

28.7     TELKOM shall not be legally bound to purchase more than its minimum
         obligations under this Agreement, based on the maximum reduction to the
         Installed Line Procurements allowable under Article 27.

28.8     TELKOM may issue one or more new Purchase Orders as appropriate in
         conjunction with a DRM relating to the installed Line Procurement
         requirements for the following Quarter.

28.9     TELKOM may issue one or more new Purchase Orders for general services
         or combine them with Purchase Orders for Installed Line Procurement
         with a separate breakdown for the general services component.

28.10    The T-21 Program includes elements which may be covered by Build
         Operate and Transfer ("BOT") arrangements between TELKOM and other
         local entities (each an "Investor"). The procurement volumes under
         these BOT arrangements are included within the overall T-21 procurement
         volumes and are to be

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<PAGE>

         planned as part of the JPS and DRM meetings, but will not be paid in
         accordance with the PAYG payment method set forth in Article 32, but
         shall be paid 100% on Commissioning unless otherwise agreed. An
         Investor shall: (a) provide PARTNER evidence of its bona fides as a
         financially sound company of good reputation; and (b) enter into a
         separate agreement with PARTNER on terms and conditions acceptable to
         PARTNER.

28.11    The Purchase Orders may be issued by one or more Investors directly
         and, if accepted by PARTNER, shall constitute separate contract(s)
         between PARTNER and the Investor for the equipment and services to be
         supplied. TELKOM shall provide PARTNER with a list of authorised
         representatives of the Investors for each region who can issue such
         Purchase Orders.

28.12    The maximum prices of the equipment and services and other commercial
         terms of these BOT arrangements shall be as provided in Chapter 2 of
         this Agreement, but the actual prices shall be subject to negotiation
         to the extent of the interest or other savings achieved by virtue of
         payment on Commissioning, or as otherwise agreed, rather than by the
         PAYG payment method. Title in the equipment shall be transferred upon
         full payment by the Investor (to eventually be transferred to TELKOM at
         the end of the BOT arrangement by virtue of the agreement between
         TELKOM and the Investor). Payment guarantee will be made by Investor
         pursuant to one of the following payment mechanisms: (i) payment to an
         escrow account at a bank in Indonesia with acceptable terms and
         conditions to PARTNER; (ii) opening of an L/C issued by a bank in
         Indonesia with terms and conditions acceptable to PARTNER; or (iii)
         issuance of a bank guarantee from a bank in Indonesia with terms and
         conditions acceptable to PARTNER.

28.13    A three year Service Level Agreement in form and substance as set forth
         in Appendix 20 (Service Level Agreement)

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<PAGE>

         shall apply to the equipment procured under the BOT arrangement upon
         Commissioning. The equipment will be operated by TELKOM on behalf of
         the Investor during the term of the BOT arrangement pursuant to a
         separate agreement and TELKOM shall work together with PARTNER as if
         the BOT equipment were part of TELKOM's network.

28.14    The substance of Chapters 1 and 5 of this Agreement, appropriately
         adjusted to the circumstances, shall be included in the contract
         between PARTNER and the Investor, unless otherwise agreed.

28.15    As security for its payment obligations only during the period
         contemplated in Article 35.1, TELKOM shall procure the issuance with
         each Purchase Order and shall deliver to PARTNER with each Purchase
         Order one or more documentary credits and promissory note in favor of
         PARTNER in the aggregate amount of the total value of the Purchase
         Order. The Parties agree that it is a condition precedent to the
         Purchase Order becoming a binding contract between the Parties that the
         documentary credit and promissory note covering payment for the work to
         be performed under the relevant Purchase Order(s) is in full force and
         effect. Each documentary credit issued under this Article 28.15 shall:

         (a)      be a bank guarantee or standby letter of credit denominated in
                  the currency in which TELKOM's payment obligation is
                  denominated;

         (b)      be issued by a bank acceptable to PARTNER; and

         (c)      be issued on terms and conditions acceptable to PARTNER.

28.16    As each payment is made by TELKOM in respect of the relevant Purchase
         Order, the value of the applicable documentary credit shall be adjusted
         to reflect the aggregate outstanding Contract Value of that Purchase
         Order. This process of adjustment may only be made at the

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<PAGE>

         amount of and on the date on which each payment is received by PARTNER.
         TELKOM shall maintain the documentary credit and promissory note at the
         appropriate value levels at all times until the last payment in respect
         of the relevant Purchase Order has been received by PARTNER.

ARTICLE 29. PERFORMANCE BOND

29.1     As security for the performance of the work to be undertaken by PARTNER
         for Package 1 of the T-21 Program, within ten (10) Business Days
         following TELKOM's issuance and PARTNER's acceptance of the first
         Purchase Order, PARTNER shall deliver to TELKOM a performance bond in
         favor of TELKOM in the amount of 5% of the total value of the first
         Purchase Order, in form and substance as appears in Appendix 25
         (Performance Bond). The Parties agree that it is a condition precedent
         to the first Purchase Order and any subsequent Purchase Orders becoming
         a binding contract between the Parties that the Performance Bond
         covering the work to be performed under the relevant Purchase Order(s)
         is in full force and effect.

29.2     As each new Purchase Order following the first Purchase Order is issued
         and accepted, the value of the then existing Performance Bond shall be
         adjusted to reflect the aggregate value of: (i) 5% of the total value
         of that Purchase Order; plus (ii) 5% of the total value of that portion
         of the previous Purchase Order(s) relating to equipment, software and
         components not yet Commissioned as of that date. This process of
         adjustment may only be made at the end of each Quarter at the relevant
         DRM so as to ensure that as each new Purchase Order is issued and
         accepted, PARTNER will adjust the value of the Performance Bond to the
         appropriate level, taking into account the value of all equipment,
         software and components not yet Commissioned at that time under the
         relevant Purchase Orders (new or prior). PARTNER shall maintain the

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<PAGE>

         Performance Bond at the appropriate value levels for a period
         terminating on a date which is six (6) months from the first to occur
         of issuance of the first Integrated System Acceptance Test Certificate
         by TELKOM pursuant to this Agreement, or commercial deployment of any
         of the Deliverables.

ARTICLE 30. TERMINATION OF PURCHASE ORDERS

30.1     A Purchase Order may be terminated by TELKOM in whole or in part and
         from time to time, whenever TELKOM shall so determine. TELKOM shall
         deliver to PARTNER a written notice, the "Notice of P.O. Termination",
         signed by authorized signatories of TELKOM, specifying the extent to
         which performance of work under the Purchase Order is terminated and
         the date (which shall be not less than five (5) Business Days from the
         date of Notice of P.O. Termination) upon which such termination becomes
         effective.

30.2     On receipt of such a Notice of P.O. Termination, unless otherwise
         directed by TELKOM in the notice, PARTNER shall:

30.2.1   stop work under the Purchase Order on the date and to the extent
         specified in the Notice of P.O. Termination (except to the extent
         reasonably required by considerations of security or safety);

30.2.2   place no further orders or contracts for materials, services, or
         facilities except as may be necessary for completion of any portion of
         the work under the Purchase Order which is not terminated;

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<PAGE>

30.2.3   use reasonable efforts to terminate all orders and contracts to the
         extent that they relate to the performance of work terminated by the
         Notice of P.O. Termination;

30.2.4   subject to payment by TELKOM in accordance with Article 30.3, as
         reasonably requested assign to TELKOM, in the manner, at the time and
         to the extent directed by TELKOM, PARTNER's rights, title and interest
         under the orders and contracts so terminated;

30.2.5   use reasonable efforts to mitigate any damages caused by the
         termination of the Purchase Order and settle outstanding liabilities
         and claims arising out of such termination of orders and contracts,
         with TELKOM's approval or ratification to the extent they may require,
         which approval or ratification shall be final for all the purposes of
         this Article 30;

30.2.6   subject to payment by TELKOM in accordance with Article 30.3 and as
         reasonably requested by TELKOM, (i) transfer title and deliver to
         TELKOM in the manner, at the time, and to the extent (if any) directed
         by TELKOM the fabricated or unfabricated parts, work in progress,
         completed work, supplies, and other material produced as part of, or
         acquired in connection with the performance of the work terminated by
         the Notice of P.O. Termination, and (ii) deliver to TELKOM the
         completed or partially completed plans, drawings, information and other
         property which, if the Purchase Order had been completed, would have
         been required to be furnished to TELKOM;

30.2.7   complete performance of such part of the Scope of Work as may not have
         been terminated by the Notice of P.O. Termination; and

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30.2.8   take such action as may be necessary, or which TELKOM may direct, for
         the protection and preservation of the property related to the Purchase
         Order which is in PARTNER's possession and in which TELKOM has or may
         acquire an interest, provided that if it complies with TELKOM's
         directions, PARTNER shall have no liability to TELKOM for loss or
         damage to such property.

30.3     After reception of a Notice of P.O. Termination PARTNER shall submit to
         TELKOM a written termination claim. Such claim shall be submitted
         promptly, but in no event later than ninety (90) calendar days from the
         Notice of P.O. Termination. Payment of claimed amounts under such
         termination claim agreed by TELKOM to be payable in accordance with
         performance by PARTNER of its obligations under Article 30.2, shall be
         payable to PARTNER pursuant to issuance of a special Purchase Order and
         payment within twenty-one (21) Business Days of approval by TELKOM
         (such approval not to be unreasonably withheld or delayed) of the
         claim. For the avoidance of doubt, for purposes of TELKOM's payment
         obligations under this Article 30, any equipment, software or
         components related to a Purchase Order for which Notice of P.O.
         Termination has been given shall be inspected and checked to the
         satisfaction of TELKOM, which inspection shall be deemed to constitute
         Commissioning. In such event the Subscriber Target for the terminated
         portion of the equipment, software or components will be adjusted to
         zero and the value of that portion of the Purchase Order terminated
         shall not be taken into account for the purposes of Article 32.2.

30.4     In the settlement of any such partial or total termination claim,
         TELKOM's payment to PARTNER shall be limited to the following:

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30.4.1   the price for completed work, based on Appendix 4 (Price Schedule);

30.4.2   a fair and reasonable sum in respect of partially completed work
         prorated where practicable based on Appendix 4 (Price Schedule);

30.4.3   the cost of supplies and materials reasonably and necessarily purchased
         in respect of the terminated portion of the Purchase Order, but not
         incorporated into completed or partially completed work;

30.4.4   the cost of settling and paying claims arising out of the termination
         of the work under contracts and orders, as provided above, which are
         properly chargeable to the terminated portion of the Purchase Order;

30.4.5   the reasonable costs of accounting, legal and clerical expenses
         reasonably necessary for the preparation of settlement claims and
         supporting data with respect to the terminated portion of the Purchase
         Order and for the termination and settlement of contracts thereunder,
         together with reasonable storage, transportation, and other costs
         incurred in connection with the protection or disposal of property
         allocable to the Purchase Order.

 30.5    Notwithstanding the above, the total payment to PARTNER pursuant to
         this Article 30, taken together with any other payment, shall not
         exceed the value applicable to the work or to part therefore so
         terminated. TELKOM shall not be responsible for any costs or charges
         beyond those costs which have been claimed and validated in accordance
         with Article 30.4. TELKOM shall not be liable to PARTNER in the event
         of such termination for any loss of profit or consequential damages
         whatsoever.

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30.6     In arriving at the amount due to PARTNER under this Article 30, there
         shall be deducted from all monies paid or due to be paid to PARTNER,
         any amounts then due and owing by PARTNER to TELKOM and the agreed
         price for or the proceeds of sale of any materials, supplies or other
         things acquired by PARTNER or sold, pursuant to the provisions of this
         Article, and not otherwise recovered by or credited to TELKOM. If this
         results in PARTNER having a net liability towards TELKOM, such sum
         shall be payable by PARTNER to TELKOM within thirty (30) calendar days
         after written demand.

30.7     For a period of one (1) year after final settlement under the Purchase
         Order, PARTNER shall preserve and make available to TELKOM at all
         reasonable times at PARTNER's premises, but without charge to TELKOM,
         all books, records and documents bearing on costs and expenses under
         the Purchase Order relating to the work terminated under this Article
         30.

ARTICLE 31. TERMS OF PAYMENT

31.1     Payments by TELKOM shall be made to PARTNER in accordance with the
         terms of each Purchase Order. The Parties contemplate that TELKOM will
         pay for equipment procured pursuant to this Agreement in three
         instalments: upon delivery, following Commissioning as evidenced by
         issuance of the respective Integrated System Acceptance Test
         Certificate, followed by payment during the PAYG Period, in accordance
         with the terms and conditions of this Article 31.

31.2     TELKOM will pay 10% of the value of a particular Purchase Order upon
         delivery of the Deliverables (and equipment related services but not
         including general services for operation and maintenance, spare parts,
         software upgrades, Documentation and training) to the Location
         specified in the Purchase Order. This amount shall be due upon delivery

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<PAGE>

         to TELKOM of an invoice for the agreed sum, accompanied by the
         following documents, or such additional documents as may reasonably be
         required by TELKOM:

31.2.1   Invoice covering letter;

31.2.2   Original shipping documents (bill of lading or A/W bill) for imported
         equipment;

31.2.3   Packing list for equipment;

31.2.4   Detailed BoQ and the value of the detailed BoQ by Location and Site;

31.2.5   Tax invoice ("Faktur Pajak") and tax payment slip (SSP) ("Surat Setoran
         Pajak");

31.2.6   Original Goods Delivery Certificate ("Berita Acara Barang Tiba") issued
         by TELKOM for equipment; and

31.2.7   Simple receipt ("Kuitansi").

31.3     TELKOM will pay 15% of the proportionate value of a particular Purchase
         Order upon successful Commissioning of all or part of the equipment,
         software and components in a particular Purchase Order as evidenced by
         TELKOM's issuance of the related Integrated System Acceptance Test
         Certificate or Partial Integrated System Acceptance Test Certificate,
         or commercial deployment of any of the Deliverables, whichever is
         earlier. This amount shall be due upon delivery to TELKOM of an invoice
         for the agreed sum, accompanied by the following documents, or such
         additional documents as may reasonably be required by TELKOM:

31.3.1   Invoice covering letter;

31.3.2   Detailed BoQ and the value of the detailed BoQ by Location and Site;

31.3.3   As-built drawings;

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31.3.4   Original Integrated System Acceptance Test Certificate and/or Partial
         Integrated System Acceptance Test Certificate, certified by TELKOM;

31.3.5   Tax invoice ("Faktur Pajak") and tax payment slip (SSP) ("Surat Setoran
         Pajak"); and

31.3.6   Simple receipt ("Kuitansi").

31.4     The remaining value of each Purchase Order constituting 75% of the
         total value of a particular Purchase Order (the "PAYG Value"), shall be
         invoiced (a "PAYG Value Invoice") only upon issuance of the associated
         Integrated System Acceptance Test Certificate(s) (and not Partial
         Integrated System Acceptance Test Certificates), or commercial
         deployment of any of the Deliverables, whichever is earlier, and shall
         be payable in accordance with the provisions of Article 32. PAYG Value
         Invoices shall be accompanied by the following documents, or such
         additional documents as may reasonably be required by TELKOM:

31.4.1   Invoice covering letter;

31.4.2   Simple receipt ("Kuitansi");

31.4.3   Copy of Integrated System Acceptance Test Certificate(s) certified by
         TELKOM; and

31.4.4   A worksheet showing the PAYG Value of the Purchase Order.

31.5     To request quarterly payments during the PAYG Payment Period under PAYG
         Value Invoices issued in accordance with the provisions of Article 32,
         PARTNER shall deliver to TELKOM a "PAYG payment request" in form and
         substance as shall be agreed between the Parties, each such request to
         be accompanied by a tax invoice ("Faktur Pajak") and tax payment slip
         (SSP) ("Surat Setoran Pajak") and shall include at least the following
         data:

         (i)      the total additional number of T-21 Program CDMA subscribers
                  in the relevant DIVRE at the end of the Quarter;

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         (ii)     the total Subscriber Target number attributable to the
                  Deliverables that have been Commissioned in the relevant DIVRE
                  in the Quarter;

         (iii)    the total PAYG Value of all Deliverables that have been
                  Commissioned in the Quarter;

         (iv)     the requested quarterly payment calculated in accordance with
                  the provisions of Article 32.

ARTICLE 32. PAYG PAYMENTS

32.1     For the purposes of implementing the Pay as You Grow (PAYG) concept
         contemplated in the T-21 Program, all Purchase Orders relating to all
         or any part of the Deliverables that have been Commissioned (excluding
         those in relation to general services for operation and maintenance,
         spare parts, software upgrades, Documentation and training) in the same
         Quarter shall be grouped together on a DIVRE level basis, provided also
         that a group of Purchase Orders may be segmented by types of equipment,
         software, components and scope of services, if necessary. For the
         purposes of administration, each Purchase Order shall at the end of the
         relevant Quarter be treated as if comprised of two parts as
         appropriate, one part comprising all Commissioned Deliverables and one
         part comprising the Deliverables not yet Commissioned.

32.2     Subject to the provisions of this Article 32, PAYG payments for that
         part of each Purchase Order comprising Commissioned Deliverables shall
         become due at the end of each Quarter based on the net increase in
         subscribers in the DIVRE at the end of each Quarter as stated in the
         Subscriber Recorder. The initial calculation of PAYG payments in the
         case where there are no outstanding Purchase Orders will be as follows:

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Total number of T-21 Program CDMA subscribers
in that DIVRE at the end of that Quarter minus   Total PAYG Value of all
the total number of T-21 Program CDMA            Deliverables Commissioned
subscribers in that DIVRE at the end of          in that Quarter
previous Quarter

-------------------X
Total Subscriber Target number attributable to
the Deliverables that have been Commissioned
in that DIVRE in that Quarter

           The detailed methodology to calculate the PAYG payments is provided
           in Appendix 11.

32.3     Where only part of the equipment (e.g., a BTS or card) in a
         Location/Site referred to in a Purchase Order has been Commissioned,
         (i) the Subscriber Target shall be based on the Commissioned BTS or
         cards; and (ii) the PAYG Value attributable to that equipment, software
         and components shall be based on the value of said Commissioned BTS or
         cards including the associated software and components.

32.4     The PAYG Value of equipment, software and components such as BSC, PDN,
         and other equipment in relation to a particular Purchase Order
         containing such equipment shall be calculated at the end of the
         relevant Quarter by using the total value of such equipment software
         and components Commissioned in that Quarter multiplied by the ratio of
         the Subscriber Target of all BTS Commissioned in that Quarter divided
         by the total Subscriber Target of all BTS in the related Purchase
         Order.

32.5     Purchase Orders signed by TELKOM will be paid off sequentially
         commencing with the earliest in time. Non-Commissioned Deliverables in
         a Purchase Order issued in a particular Quarter will be carried forward
         into the Purchase Order(s) aggregated in the following Quarter, until
         Commissioned, and if Commissioned in

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         that Quarter, will be accounted for in the calculation of the PAYG
         payment in that Quarter. To facilitate this calculation, the particular
         Purchase Order from which non-Commissioned Deliverables have been
         carried forward into the following Quarter shall be deemed amended by
         mutual agreement of the Parties by way of inclusion of such
         non-Commissioned Deliverables in a subsequent Purchase Order issued in
         that following Quarter. Thereafter, without further action of the
         Parties, such Purchase Order previously comprised of both Commissioned
         and non-Commissioned Deliverables shall be deemed to be comprised only
         of Commissioned Deliverables and, as such, shall become payable under
         the PAYG payment mechanism set out in this Article 32. Any adjustment
         that are required to be made to the Implementation Schedule and/or
         Deployment Plan as a result of this carry-forward shall be discussed
         and decided at the relevant DRM.

32.6     The net subscriber increase within the second and/or following Quarter
         will be counted first towards the cumulative subscribers related to the
         Deliverables Commissioned in the first Quarter to the extent such
         portion of such Purchase Order relating to the Deliverables
         Commissioned in the relevant Quarter have not been paid fully, and then
         towards the cumulative subscribers related to the Deliverables
         Commissioned in the second and/or following Quarter.

32.7     If there is a decrease in the number of subscribers due to churn or
         other reasons in the following Quarter, then no PAYG payments shall be
         due until the current number of subscribers has exceeded the number of
         subscribers at the time the last PAYG payment became due.

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32.8     If the PAYG Value of a Purchase Order has not been paid by the end of
         its PAYG Payment Period, the remaining unpaid amount shall be due upon
         delivery to TELKOM of an invoice for that amount.

32.9     In order to calculate the PAYG Value applicable to each Quarter, TELKOM
         shall within ten (10) Business Days of the end of each Quarter, provide
         to PARTNER the net number of new subscribers added and the total number
         of subscribers per DIVRE as recorded by the Subscriber Recorder.
         PARTNER shall within ten (10) Business Days of receipt of the
         Subscriber Recorder numbers, submit to TELKOM a calculation showing the
         PAYG payments due by DIVRE and Purchase Order number (or amended
         Purchase Order number) for that Quarter.

ARTICLE 33. GENERAL SERVICES PAYMENTS

33.1     General services for training provided under this Agreement are not
         under the PAYG payment scheme and shall be invoiced by PARTNER
         supported by a copy of the Training Acceptance Certificate issued by
         TELKOM, after the services have been completed and shall be payable by
         TELKOM thirty (30) days after the date the invoice is received by
         TELKOM.

33.2     All general services for Documentation to be provided by PARTNER under
         this Agreement shall be invoiced by PARTNER supported by a copy of a
         Documentation Acceptance Certificate issued by TELKOM and shall be paid
         25% on delivery and the remaining 75% shall be paid in accordance with
         the PAYG payment scheme by adding the amount due to the Contract Value
         of the group of Purchase Orders for equipment, software and components
         Commissioned in that Fiscal Year and paid in accordance with the PAYG
         Payment Period for that group of Purchase Orders.

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33.3     Payments for operation and maintenance, spare parts, software updates
         and upgrades shall be made and paid in accordance with the terms of the
         applicable Service Level Agreement.

ARTICLE 34. INVOICING

34.1     Payments by TELKOM shall be made to PARTNER based on the issuance and
         delivering of invoices to TELKOM.

34.2     All invoices shall be submitted in triplicate, shall be sent by courier
         and shall be accompanied by the relevant documentation listed in
         Article 31 showing the acknowledgement by TELKOM or its agent of the
         relevant equipment or services delivered and/or such other supporting
         documents as may be required by TELKOM. All invoices shall be addressed
         to:

         PT TELEKOMUNIKASI INDONESIA, TBK, Attn. Head of Fixed Wireless CDMA
         Division (as Project Manager)
         Jalan Kebon Sirih, Kav. 12
         Jakarta, Indonesia

34.3     TELKOM shall have (a) fifteen (15) Business Days from receipt of an
         invoice to either (i) dispute the amounts due by notice in writing or
         (ii) instruct the amount to be released under the vendor financing
         arrangements, or (b) thirty (30) calendar days to pay PARTNER if paid
         directly by TELKOM (without involvement of a vendor financing
         institution). If TELKOM disputes the invoice, PARTNER shall have five
         (5) Business Days to reissue a further invoice and the provisions of
         sub-paragraph (a) and (b) shall again apply.

34.4     TELKOM shall pay interest at the rate of 6% per annum, on any
         undisputed payment due and unpaid for a period of three (3) months, up
         to a maximum of 5% of the undisputed and unpaid portion of the Contract
         Value referenced in the applicable Purchase Order, commencing from the
         end of such 3-month period.

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ARTICLE 35. FINANCING OF TELKOM'S PAYMENT OBLIGATIONS

35.1     PARTNER has agreed to seek and arrange financing from one or more
         reputable financial institutions and TELKOM and PARTNER have entered
         into discussions in relation to a financing proposal for the financing
         of TELKOM's payment obligations under this Agreement. The general
         concept of the financing proposal and payment mechanism is set out in
         Appendix 15 (Financing Arrangements). The Parties intend to conclude
         the financing arrangements as soon as possible following execution of
         this Agreement but in any event at the latest six (6) months following
         such execution. In the event that the Parties cannot agree on
         acceptable financing terms with the relevant financial institution(s)
         by the end of such six (6) month period, or as such period may be
         extended by mutual written agreement of the Parties, TELKOM reserves
         the right to terminate the Agreement, in which event the provisions of
         Articles 14.4, 14.5 and 14.6 shall apply.

35.2     If the financing arrangements contemplated in Article 35.1 have not
         been put in place within the period required in Article 35.1 and if
         TELKOM decides not to exercise its right to terminate, TELKOM shall
         provide alternate financing or a bank guarantee or equivalent security
         satisfactory to PARTNER in relation to all Purchase Orders issued or to
         be issued.

ARTICLE 36. CHANGE REQUEST PROCEDURES

36.1     During implementation of the Scope of Work, a Party may request at any
         time that a change be made to (without limitation) the Deliverables,
         Purchase Orders, the Installed Line Procurements.

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         the Implementation Schedule, the Deployment Plan or other Appendix to
         this Agreement, as the case may be. Such request shall be made in the
         form of a "Change Request" and must be in writing.

36.2     The Change Request form shall be completed by the requesting party in
         accordance with Appendix 18 (Change Request).

36.3     Within ten (10) Business Days after receipt of a Change Request, or
         within such other period as may be agreed, PARTNER will evaluate the
         Change Request and provide a full written quotation or cost reduction
         estimate specifying the form that the proposed amendment will take and
         detailing the cost impact and effect on the works, including the
         Implementation Schedule.

36.4     In the event that the Change Request is processed and agreed in the
         required form, the relevant Deliverables, Purchase Order(s), Installed
         Line Procurements, Implementation Schedule, Deployment Plan or other
         Appendix to this Agreement, as the case may be, shall be deemed amended
         accordingly.

36.5     In the event that the Change Request cannot be agreed, there shall be
         notification of the reasons in writing within ten (10) Business Days of
         receiving the Change Request. Otherwise, when the Parties agree to
         implement the Change Request, the details of such change shall be
         specified and agreed in writing.

36.6     At the same time as giving the Change Request, the requesting Party
         shall provide the other Party such information as may reasonably be
         required to assess the impact of the Change Request on the overall
         Scope of Work. If there is a reasonable possibility that there will
         need to be a material amount of time and effort spent in dealing with a
         Change Request additional payment or payment reduction.

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         as appropriate, for that time and effort may be negotiated, but
         compensation for any work to deal with the Change Request shall be
         contingent on prior written agreement between TELKOM and PARTNER.

36.7     PARTNER shall make such changes and implement the Change Request only
         upon execution by the Parties of a written document specifying the
         agreed changes, the scope of the changes, the adjustments to the
         Implementation Schedule, if any, the additional/costs or reduction of
         costs, if any.

36.8     Where immaterial changes in the overall size, scope or functionality of
         the Deliverables or to the Scope of Work or Technical Specifications
         result in an amendment of a Purchase Order and/or this Agreement, such
         changes will not affect the Contract Value or the Implementation
         Schedule. The cost of any minor amendments or variations or amendments
         required by reason of any defect or deficiency in any design or
         Documentation or any equipment, component or software made or provided
         by PARTNER shall be borne solely by PARTNER.

36.9     In the event TELKOM and PARTNER cannot reach agreement on the scope and
         impact of a Change Request, the matter shall first be referred to the
         respective managements of both TELKOM and PARTNER, and failing
         agreement, the provisions of Article 16 shall apply.

ARTICLE 37. RELOCATION OF EQUIPMENT

37.1     Following discussion between the Parties of costs and benefits, TELKOM
         may decide to re-locate equipment within a DIVRE if it decides that
         initial demand projections or forecast in a given Location were not
         accurate and the equipment to be procured pursuant to a Purchase Order
         is not likely to generate the revenue that was expected.

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37.2     Upon written request of TELKOM, PARTNER shall assist with and supervise
         such relocation including re-designing the Network and conducting all
         appropriate tests to put the re-deployed equipment into service.

37.3     PARTNER shall bear the costs for the relocation of modular equipment
         such as sub-racks and cards which the Parties have agreed do not entail
         substantial costs. In all other cases, TELKOM and PARTNER shall conduct
         a cost benefit analysis prior to any relocation. All reasonable costs
         associated with the relocation of all other equipment shall be borne by
         TELKOM. Any relocation of equipment conducted by TELKOM shall be
         supervised by PARTNER. PARTNER shall bear the costs of providing the
         supervision service. TELKOM shall bear the costs of any additional
         equipment required.

ARTICLE 38. DETAILS OF PARTNER'S BANK ACCOUNTS

38.      Details of PARTNER's bank accounts into which all payments from TELKOM
         shall be paid into are set out below:

1.       USD Account For Import Goods/Material Payment in USD

         Name of
         the Bank        :  Mellon Bank NA
         Address of      :  Pittsburgh, PA ABA
         the Bank           043000261

         Beneficiary     :  Ericsson Wireless
                            Communications Inc.
                            Federal Tax ID:
                            75-2816602
                            6455 Lusk Boulevard,
                            San Diego, CA 92121
                            USA
         Account No.     :  048872
         Swift Code      :  MELNUS3P
         Bank Contact    :  Lillian Booker
         Phone No.       :  +1.412.234.8790

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2.       USD Account For Local Services/ Payment in USD

         PT Ericsson Indonesia
         Citibank N.A
         Jl. Jend. Sudirman Kav. 54-55 Jakarta
         Account No. 0.103933.528
         Swift Code CITIIDJX

3.       IDR Account For Local Services/ Goods/Payment in IDR

         PT Ericsson Indonesia
         Citibank N.A
         Jl. Jend. Sudirman Kav. 54-55 Jakarta
         Account No. 0.103933.099

CHAPTER 4. CONSORTIUM ORGANIZATIONAL MATTERS

ARTICLE 39. CONSORTIUM MEMBERSHIP CRITERIA

39.1     The Consortium of which PARTNER is a part shall have at least one
         Indonesian member.

39.2     The Consortium leader shall be required to be the leading technology
         supplier for the Project (i.e., the radio network manufacturer).

39.3     All substitutions, replacements or other changes to the composition of
         the membership of PARTNER's Consortium must be submitted to and
         approved by TELKOM in writing before being implemented.

ARTICLE 40. ASSIGNMENT AND SUBCONTRACTING

40.1     PARTNER shall not, without the prior written consent of TELKOM (which
         consent shall not be unreasonably withheld or delayed), assign this
         Agreement, or assign or encumber any of the moneys due or becoming due
         under this Agreement, it being understood that PARTNER intends to
         assign its interests in accounts receivable from TELKOM in favour of a
         reputable third party institution for purposes of facilitating the
         financing of the Deliverables in accordance with this Agreement. TELKOM
         reserve the right to assign this Agreement, without prior

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         approval of PARTNER to an Investor, as contemplated in Articles 28.10 -
         28.14 provided the Investor gives PARTNER satisfactory payment
         assurances under Article 28.12 of this Agreement.

40.2     TELKOM reserves the right to assign this Agreement, with the prior
         written approval of PARTNER (such approval not to be unreasonably
         withheld), to any of TELKOM's subsidiaries or related companies,
         provided the subsidiaries or related companies provide satisfactory
         payment assurances.

40.3     A schedule of each proposed sub contractor and the part of the Scope of
         Work proposed to be performed by such sub-contractor is attached in
         Appendix 1. In case of any plan to change and/or to add a
         sub-contractor. PARTNER shall notify TELKOM in writing immediately
         before the proposed sub-contractor is appointed. TELKOM shall advise
         within ten (10) 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 PARTNER shall take such objections into
         account so as to meet with TELKOM's approval.

40.4     The use of sub-contractors shall in no way relieve PARTNER 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
         related to this responsibility in accordance with this Agreement.

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40.5     PARTNER 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 41. INVOLVEMENT OF LOCAL ENTITIES

41.1     PARTNER 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. In this connection, "all reasonable efforts"
         will be defined by reference to a minimum threshold level of local
         Indonesian involvement in executing the Project, comprising a
         percentage of the total contract value of the Project, which is at
         minimum 20% of the Contract Value of Package 1.

41.2     The Local Content requirement can be satisfied by reference to the
         total contract value of the Project executed through Local Indonesian
         Entities, whether as members of PARTNER, key subcontractors or through
         other external Indonesian parties.

41.3     TELKOM agrees that expenses of non-Local Indonesian Entities supporting
         the Project may be included in the calculation of total contract value
         for these purposes, including salaries paid to staff located in
         Indonesia (Indonesian nationals or residents only), property rental and
         other operational expenses of Indonesia offices, administrative
         materials and services acquired in Indonesia, provided that PARTNER
         executes an undertaking to TELKOM as provided below.

41.4     The undertaking required by TELKOM shall state that PARTNER 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

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         procurements will be in accordance with, the requirements stated by
         TELKOM in the RfP for the T-21 Program to the extent not inconsistent
         with this Agreement.

41.5     TELKOM reserves the right to verify, accept or reject all claims in
         part or in full regarding execution of the Project through Local
         Indonesian Entities, expenses of overseas companies and in regard to
         the claimed transfer of skills, technology and financial benefits.

ARTICLE 42. LOGISTICS

42.1     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, fees and levies.
         In addition, pursuant to the Scope of Work, PARTNER shall provide all
         equipment related services (covering survey, design, planning, permits,
         right of way, services related to land acquisition, installation,
         integration, project management, insurance up to transfer of title in
         accordance with Article 10.2, testing and commissioning, and all
         related materials and expenses) for both imported and local goods.

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

42.3     PARTNER shall provide all warehousing requirements and explain the
         locations of the facilities to be used for this purpose. PARTNER 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. PARTNER shall ensure that
         all equipment is adequately

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         packaged and stored to avoid any damage. While in such warehousing, the
         equipment and material will be the sole responsibility of PARTNER.

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

ARTICLE 43. INVENTORY

43.1     PARTNER shall provide all services to ensure proper installation of
         equipment, components or other Project goods, provide optimal operating
         conditions and maximize the long term viability of the foregoing.
         PARTNER must provide all tools and equipment necessary to install and
         commission any Project equipment procured under this Agreement.

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

43.2.1   PARTNER'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;

43.2.2   PARTNER's contractor shall employ an adequate supervisory force and an
         adequate staff of experienced engineers, technicians and workmen to
         complete the Scope of Work in a satisfactory and workman like manner
         within the time specified in the this Agreement;

43.2.3   with the cooperation of TELKOM staff, all work at any Location/Site
         shall be carried out in such a manner as to minimize any obstructions
         to the operation of TELKOM's staff at such Location/Site:

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

43.2.5   PARTNER and its sub-contractors shall provide a list of equipment,
         tools, measuring equipment, machinery and electrical power equipment
         which is used for installation purpose only.

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

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

43.3.2   the PARTNER 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;

43.3.3   PARTNER 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

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

ARTICLE 44. LOCAL SUPPORT INFRASTRUCTURE

44.1     PARTNER shall have local (Indonesian) infrastructure in place to
         support the T-21 Program as set out in Appendix 10. PARTNER shall
         provide TELKOM access to its local technical staff to ensure effective
         deployment, operations and timely problem solving. PARTNER shall use
         its best endeavours to ensure that such local support is timely, cost
         effective, and of high quality in order to meet TELKOM's desired
         service levels.

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ARTICLE 45. PROJECT MANAGEMENT

45.1     PARTNER shall propose a Project Management Plan ("PMP"), in a form as
         provided in Appendix 8 (Project Management Plan). TELKOM and PARTNER
         shall discuss and mutually agree on the details of the PMP.

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

45.2.1   Scope of work;

45.2.2   Project organization and personnel;

45.2.3   Project activity plan and schedule by Location;

45.2.4   Reporting of progress and issues.

45.3     PARTNER shall appoint the Project personnel as described in the PMP
         including a Project Manager who will be responsible for contact with
         TELKOM with respect to resolving issues arising in the course of
         Project implementation. The Project Manager may also serve as one of
         the Project personnel referenced in the PMP.

45.4     The identity and qualifications of all key Project personnel proposed
         by PARTNER to work on the Project in Indonesia, including the Project
         Manager as described in the PMP shall be notified in writing by PARTNER
         to TELKOM before appointment. The Project Manager shall only be
         appointed with TELKOM's prior approval. For all other key Project
         personnel, TELKOM shall inform PARTNER of any objections within ten
         (10) Business 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.

45.5     At TELKOM's sole discretion, TELKOM may appoint its Project Manager
         with whom PARTNER Project personnel shall

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         maintain close cooperation and communication at all times. TELKOM may
         also appoint local supervisors with whom PARTNER'S local Project
         personnel shall maintain close cooperation and communication at all
         times.

45.6     TELKOM may object to and, after consultation with PARTNER direct
         PARTNER to remove from any site immediately any person employed by
         PARTNER 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.

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

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

45.9     PARTNER shall provide comprehensive and up-to-date reporting to TELKOM
         management at all appropriate levels to track progress of the Scope of
         Work, monitor key requirements, identify and address issues and ensure
         high quality of deployment achieved within budget.

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45.10    PARTNER shall provide the following types of reports to TELCOM
         during the period of deployment of the Network on a monthly basis:

         (a) Deployment Status Update;

         (b) Updated Issues Log;

         (c) Shipment Tracking Report.

45.11    PARTNER shall at intervals of two (2) months submit an updated
         Implementation Schedule to TELKOM. The updated Implementation Schedule
         shall contain important milestones including:

45.11.1  Commencement of implementation of each Location;

45.11.2  Commencement of the detailed survey for each Location;

45.11.3  Completion of installation, construction designs, drawings associated
         with the Project;

45.11.4  Readiness dates for interim inspections, PARTNER own tests, and
         Commissioning tests for each Location/Site;

45.11.5  Manufacturing and transportation schedules of materials for each Sub-
         system per each Location including the times of factory performance
         tests.

45.12    Delivery of equipment, components, software and services by PARTNER,
         shall be in conformity with the provisions of this Agreement and/or the
         respective Purchase Order, including the time schedule and milestones
         set forth in Appendix 9 (Implementation Schedule).

45.13    Each alteration to the Implementation Schedule shall be upon mutual
         agreement of the Parties and valid only if executed as a Change Request
         signed by the authorized representative of each of the Parties.

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45.14    PARTNER shall keep records of (without limitation) the general business
         administration of the Project, i.e.:

45.14.1  Invoicing and records of TELKOM payments;

45.14.2  Personnel management;

45.14.3  Taxes; and

45.14.4  Insurance.

45.15    PARTNER shall report on the Project's progress, including any
         significant difficulties encountered, to TELKOM at monthly meetings in
         accordance with Article 26.3.

45.16    PARTNER shall liaise with TELKOM in each DIVRE for deployment
         coordination and with regional authorities, public utilities and third
         parties in the areas for permits and Network roll-out. The liaison
         shall be arranged during regular monthly meetings with TELKOM and the
         following parties during Network roll-out: (i) TELKOM in the regional
         division area; (ii) other TELKOM contracting parties; and (iii)
         subcontractors.

45.17    In addition, the Parties shall arrange ad-hoc meetings as required on
         reasonable notice to deal with co-ordination and implementation related
         issues.

ARTICLE 46. RESEARCH AND DEVELOPMENT

46.1     PARTNER shall from time to time at TELKOM's request consider
         participating in joint development efforts in the field of software and
         services enhancement. Any such joint development activities shall be
         mutually agreed upon as to the scope, responsibilities of each Party,
         allocation of costs, ownership of Intellectual Property Rights and
         other mutually agreed items. TELKOM employees shall be actively
         involved in such development efforts.

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<PAGE>
46.2     Pursuant to Article 5.1.9, PARTNER shall provide timely notice to
         TELKOM of its newest tested technologies and any improvements it deems
         advantageous to TELKOM in the current Project "road map" of technology
         development.

ARTICLE  47. TRAINING, TRANSFER OF KNOW HOW AND DEVELOPMENT OF INTELLECTUAL
             PROPERTY

47.1     PARTNER shall provide training in accordance with this Article 47 and
         the detailed training requirements and schedule specified in Appendix
         19 (Training). TELKOM shall provide qualified engineers for training
         programs provided by PARTNER under this Agreement.

47.2     Training shall be conducted in two (2) parts, one in PARTNER's training
         center overseas (at a location to be advised to TELKOM at least
         forty-five (45) calendar days prior to such training), and the other in
         Indonesia. For both training locations, PARTNER shall provide
         class-room training ('Class') and On-the-job training ('Job'). PARTNER
         shall propose detailed schedules for both types of training based on
         TELKOM's requirements.

47.3     The training course shall cover 3 (three) areas of expertise, i.e.:

         (a)      SYSTEM ENGINEERING

                  PARTNER shall conduct training in an efficient manner to
                  produce well trained proficient personnel capable of
                  engineering. The course is intended to train personnel to have
                  basic knowledge of CDMA network planning and system design
                  engineering.

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<PAGE>

         (b)      OPERATION AND MAINTENANCE

                  The course is Intended to train personnel to have basic
                  knowledge of system's operation and maintenance and who Shall
                  be required to provide guidance and instruction, necessary to
                  the entire operation team after completion.

         (c)      BUSINESS DEVELOPMENT AND MARKETING

                  The course is intended to train personnel to have basic
                  knowledge on how to develop the CDMA FWA business and will
                  Include training on product knowledge and marketing.

47.4     Overseas Training

47.4.1   The overseas training requirement for BSS is summarized below:

<TABLE>
<CAPTION>
                                                                        NUMBER OF TRAINEES
                                                                           PER TRAINING
                                                                     ------------------------
                                     NUMBER OF TRAINING   DURATION         CLASS          JOB
                                     ------------------   --------   ------------------------
<S>                                  <C>                  <C>        <C>                  <C>
System Engineering                          2 times        2 weeks            10          N/A

Operation and Maintenance                   2 times        2 weeks            10           10

Business Development and Marketing          2 times        2 weeks            10          N/A
</TABLE>

47.4.2   For overseas training, the following costs are included in the unit
         price:

         (a)      Daily allowance for accommodation and meals of $200 per
                  trainee including Saturday and Sunday and 2 days for travel
                  (arrival and departure)

         (b)      Airport tax, excess baggage and fiscal $500 per person

         (c)      Insurance, $50 per person

         (d)      Tuition Fee (including training materials)

                                       89
<PAGE>

         (e)      Roundtrip airfares from Indonesia to PARTNER's Main Training
                  Center, according to the following rates:

                  (i)   Europe              : $3,500/PAX

                  (ii)  United States       : $3,500/PAX

                  (iii) Asia                : $1,500/PAX

                  (iv)  Australia           : $2,000/PAX

47.5     In-Country Training

47.5.1   The in-country training requirement for BSS is summarized below:

<TABLE>
<CAPTION>
                                                                    NUMBER OF TRAINEES PER
                                                                           TRAINING
                                                                    ----------------------
                                   NUMBER OF TRAINING   DURATION      CLASS        JOB
                                   -------------------------------------------------------
<S>                                <C>                  <C>           <C>          <C>
System Engineering                      2 times          2 weeks       10          N/A

Operation and Maintenance               2 times          2 weeks       10           10

Business Development and Marketing      2 times          2 weeks       10          N/A
</TABLE>

47.5.2   For local training, the following costs per trainee are included in the
         unit price:

         (a)      Divlat (TELKOM's training center) fee: $350 per week for
                  accommodation, meals and training venue (not required for
                  on-the-job training)

         (b)      Tuition fee (including training materials)

47.6     Training Materials and Tools

47.6.1   PARTNER shall provide the following materials and tools for class-room
         training:

         (a)      Introduction of CDMA FWA including supported services;

         (b)      System Planning, Engineering, Operation and Maintenance
                  Procedures;

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         (c)      Network Planning, which includes Traffic Engineering and Link
                  Budget;

         (d)      Installation and Test Procedures; and

         (e)      Troubleshooting.

47.6.2   PARTNER shall propose the following training material and tools, for on
         the job training:

         (a)      Operation and maintenance procedure of CDMA FWA;

         (b)      System performance measurement; and

         (c)      Trouble shooting by measuring equipment.

ARTICLE 48. MANAGEMENT FORUM

The Parties shall establish a regular channel of communication between their
respective managements and shall hold meetings on a semi-annual basis to discuss
the progress of the T-21 Program.

ARTICLE 49. DEVELOPMENT OF INDONESIAN INDUSTRY

The Parties agree to support the development of the Indonesian
telecommunications industry and to maximise the benefit of the T-21 Program to
local industry. In additional to providing economic benefit through maximising
local procurement, TELKOM and PARTNER have agreed on other steps that they will
take together, including setting up educational or training centres, and working
with TELKOM to develop business models to promote new local business
opportunities arising out of the deployment of T.21 Program technologies such as
new CDMA content development. PARTNER has also agreed to consider supplying CDMA
20001x test bed systems and trainers to the planned educational or training
centers for CDMA 20001x, ED-DO/-DV and other CDMA Technology training of TELKOM
and other Project staff. The Parties agree to discuss the technical and
financial aspects of such joint actions and within ninety (90) days after the
effective date of this Agreement, agree on an implementation plan for
development of the Indonesian telecommunication industry in accordance with
PARTNER's commitments in its response to the RfP.

                                       91
<PAGE>
CHAPTER 5. TECHNICAL PROVISIONS

ARTICLE 50. GENERAL REQUIREMENT FOR EQUIPMENT

50.1     All equipment installed by PARTNER to TELKOM shall:

50.1.1   meet the agreed requirements in Appendix 5 (Technical Specifications);

50.1.2   function in accordance with the technical documentation in the
         Technical Specifications;

50.1.3   have obtained type approval from DGPT and met TELKOM's quality
         assurance standards;

50.1.4   at delivery meet the requirements prescribed by or pursuant to the
         applicable laws, rules, regulations, guidelines, and standards of all
         applicable jurisdictions;

50.1.5   conform to the Technical Specifications and be free of material,
         production, construction and design faults;

50.1.6   be manufactured from new and sound material;

50.1.7   at a minimum comply with the MTBF (Mean-Time-Between-Failures) values
         submitted by PARTNER and as updated from time to time;

50.1.8   be packed adequately; and

50.1.9   be accompanied by the agreed upon Documentation in English.

50.2     Until Commissioning of the relevant equipment, software and components
         in any Purchase Order in which software is included, software delivered
         by PARTNER shall not contain viruses or any improper additions or
         modifications. "Viruses" includes time bombs, worms, 'trojan horses',
         drop dead devices, back door devices or any other components, which may
         fully or partly affect the intended functioning of the software

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<PAGE>

         "Additions and modifications" mean software components which modify the
         functionality in a different way from that set forth in the applicable
         specifications. PARTNER shall not be entitled to activate a virus to
         the detriment of TELKOM. If PARTNER detects a virus or
         addition/modification or symptoms of a virus prior to Commissioning and
         during the SLA period, it shall immediately inform TELKOM and undertake
         its best efforts to eliminate the virus or the addition/modification
         and prevent damage for TELKOM at no charge.

ARTICLE 51. QUALITY ASSURANCE

51.1     PARTNER shall make all reasonable efforts to ensure that TELKOM at its
         discretion, upon reasonable notice and during business hours, is
         entitled to inspect and/or audit the production and installation phases
         of the processes of all members of PARTNER's consortium and its
         sub-contractors. PARTNER shall co-operate with TELKOM in case TELKOM
         elects at its expense to conduct such inspections and/or audits.

51.2     PARTNER shall make a final inspection of all Deliverables prior to
         delivery to TELKOM and a report containing the results of the final
         inspection shall be supplied to TELKOM on delivery.

51.3     If and in so far as any equipment or a 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.

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<PAGE>

ARTICLE 52. SURVEY, DESIGN, AND PLANNING

52.1     The planning and design activities for the Project must be able to
         fully accommodate the JPS, DRM and monthly meeting mechanism described
         in Article 26 and the flexible procurement mechanism as described in
         Article 27 of this Agreement.

52.2     The planning and design works shall consist of the following
         activities:

52.2.1   Survey of the Location/Site(s)

         PARTNER shall determine the optimum Location/Site for installation of
         the equipment, provided that the optimum Location/Site should
         preferably be in the premises of TELKOM or its subsidiaries in order to
         ease network integration and maintenance.

 52.2.2  Maximizing use of existing infrastructure

         Based on the information acquired during site surveys and data provided
         by TELKOM, PARTNER will be required to maximize and optimize all
         reusable infrastructure and incorporate it into the equipment
         requirements. The underlying objective shall be to maximize the asset
         turnover of TELKOM while ensuring that current infrastructure or future
         development/ expansion will not be impacted adversely. TELKOM shall
         review and agree to the list proposed by PARTNER before PARTNER may
         utilize it to support network roll-out.

 52.2.3  Proposing more efficient solutions

         PARTNER shall propose a more efficient solution, if available, after
         TELKOM's review of PARTNER initial roll-out plan. Such solution shall
         highlight areas of improvement from the original plan.

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<PAGE>

52.2.4   Network optimization planning

         PARTNER will be required to conduct Network optimization planning
         together with TELKOM considering both existing and future Network
         requirements. Network optimization planning must be able to fully
         accommodate the JPS, DRM and monthly meeting mechanism and the
         flexibility procurement mechanism provided for in Articles 26 and 27,
         respectively, of this Agreement. Network optimization planning shall
         consist of the proposed plan and improvement of the current plan
         including potential implication to the overall network performance.
         Network optimization planning shall take into account the following
         technical aspects:

         (a)      ease of maintenance/operation;

         (b)      network reliability (diversity to important subscriber);

         (c)      flexibility to demand fluctuation (capacity and features);

         (d)      expandability of the Network;

         (e)      ease of construction and integration; and

         (f)      interoperability.

ARTICLE 53. SITE PREPARATION, ACQUISITION, RIGHTS OF WAY AND PERMITS

53.1     The Parties shall be responsible for preparing the Locations/Sites
         where the Deliverables are to be installed in accordance with Appendix
         3 (Scope of Work).

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

53.2.1   arrange and acquire all the permits required to perform the work, such
         as (but not limited to) installation permits rights of way, and other
         permits necessary either from local municipality

                                       95
<PAGE>

         or other parties. The cost for acquiring the permit are included in the
         unit price and shall not be priced separately;

53.2.2   acquire the right of use of land on a rental basis, subsequent to
         TELKOM's approval to install towers for mounting the antennas or for
         other needs relating to the Project;

53.2.3   conduct the land acquisition process, in the event rental is not
         possible, subsequent to TELKOM's approval to install towers for
         mounting the antennas or for other needs relating with the Project.
         TELKOM shall provide and procure that its subsidiaries provide all
         reasonable assistance to PARTNER in relation to this land acquisition
         process. The cost associated with the land acquisition process (but not
         the cost of the land, rental and lease fee itself) shall be borne by
         the PARTNER. The cost of the land itself shall be agreed in advance
         with TELKOM (such agreement not to be unreasonably withheld or
         delayed). TELKOM shall make full payment to PARTNER for the cost of the
         land (inclusive of land transfer taxes and notarial fees), rental or
         lease promptly upon acquiring legal title to the land (as evidenced by
         the executed sale and purchase of land deed) or upon execution of the
         applicable rental or lease contract.

53.3     PARTNER shall arrange and acquire a frequency license from Directorate
         General of Post and Telecommunication (DGPT) on behalf of TELKOM.
         TELKOM will assist PARTNER by issuing the appropriate cover letter to
         DGPT. For the avoidance of doubt, PARTNER shall not own the license,
         but will simply support TELKOM by providing technical assistance and
         consulting services (which are included in the unit prices), provided
         that if PARTNER has diligently undertaken its obligations under this
         Article 53.3, refusal of DGPT to issue the frequency license shall not
         be deemed a default of PARTNER under this Agreement. The cost
         associated with the frequency acquisition process (but

                                       96
<PAGE>

         not the cost of the license itself) shall be borne by PARTNER. TELKOM
         shall make full payment to PARTNER for the cost of the license itself
         promptly upon TELKOM's receipt of the license.

ARTICLE 54. INSTALLATION PROCEDURES AND STANDARDS

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

         PARTNER shall provide equipment installation services that shall
         consist of the following activities:

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

54.1.2   materials delivery and storage;

54.1.3   transportation of goods;

54.1.4   installation of the equipment;

54.1.5   cleaning-up sites; and

54.1.6   site preparation plan and drawings.

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

54.2.1   PARTNER's 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;

54.2.2   PARTNER's contractor shall employ an adequate supervisory force and an
         adequate staff of experienced engineers, technicians and workmen to
         complete.

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<PAGE>

         the work in a satisfactory and workman like manner within the time
         specified in this Agreement;

54.2.3   with the cooperation of TELKOM staff, all work at each Location/Site
         shall be carried out in such a manner as to minimize any obstructions
         to the operation of TELKOM's staff at site.

54.2.4   PARTNER's contractor shall itemize and provide all equipment, tools,
         measuring equipment, machinery and electricity necessary for execution
         of the Scope of Work in Indonesia; and

54.2.5   PARTNER's contractor shall provide a list of equipment, tools,
         measuring equipment, machinery and electricity which is used for
         installation purpose only.

54.3     Installation of the equipment shall consist of the following
         activities:

54.3.1   PARTNER's contractor shall be responsible for providing connection and
         integrating sub-components into system units;

54.3.2   PARTNER's contractor shall be responsible for system unit check and
         shall ensure the each system units functions as required.

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

54.4.1   PARTNER's 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;

54.4.2   upon completion of each installation, PARTNER's 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.

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<PAGE>

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

54.6     PARTNER's 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 55. TESTING AND COMMISSIONING

55.1     BTS Pre-Commissioning Activities

55.1     Prior to PARTNER's personnel being dispatched to a Location/Site where
         the BTS is being installed, PARTNER shall cause its sub-contractor to
         provide to PARTNER and TELKOM a completed Location/Site Readiness
         Checklist. The completed checklist shall be verified and signed off by
         PARTNER's designated representative assigned to the wireless network in
         which the work is being performed. Upon the successful completion of
         the Location/Site Readiness Checklist the Location/Site will be
         declared "Location/Site Ready".

55.1.2   Once the Location/Site is declared "Location/Site Ready", PARTNER
         shall:

         (a)      provide a Commissioning team to execute the PARTNER's Own
                  Tests and the Commissioning tests after obtaining approval
                  from PARTNER's sub-contractor, who shall be notified
                  reasonably in advance of the commencement of Commissioning;

         (b)      provide all tools and test equipment (including handsets in
                  sufficient numbers) required to Commission the Cell Site
                  Cabinet/Carrier;

         (c)      install and connect all batteries and circuit packs delivered
                  to the relevant Location/Site;

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<PAGE>

         (d)      provide, place and terminate all RF cables from (i) the BTS to
                  the antenna cables(s)/ feeder cables brought to BTS equipment
                  room by PARTNER's sub-contractor and (ii) from the BTS to the
                  GPS, including all clamps, connectors, etc; and

         (e)      install all required amplifiers and other elements as
                  necessary for adding carriers to an existing BTS Cabinet.

55.2     BSC Pre-Commissioning Activities

55.2.1   Prior to PARTNER's personnel being dispatched to a Location where the
         BSC is being installed, PARTNER shall cause its sub-contractor to
         provide to PARTNER and TELKOM a completed Location/Site Readiness
         Checklist. The completed checklist shall be verified and signed off by
         PARTNER's designated representative assigned to the wireless network in
         which the work is being performed. Upon the successful completion of
         the Location/Site Readiness Checklist the Location will be declared
         "Location/Site Ready".

55.2.3   Once the Location is declared "Location/Site Ready", PARTNER shall:

         (a)      provide a Commissioning team to execute the PARTNER's Own
                  Tests and the Commissioning tests after obtaining approval
                  from PARTNER's sub-contractor, who shall be notified
                  reasonably in advance of the commencement of Commissioning;

         (b)      provide all tools and test equipment (including handsets in
                  sufficient numbers) required to Commission the Cell Site
                  Cabinet/Carrier;

         (c)      provide, place and terminate all the cables from:

                  (i)      Tx equipment

                  (ii)     PDN

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<PAGE>
                  (iii)    other BSCs, including all clamps, connectors, etc.

55.3     Testing and Equipment Certification

55.3.1   PARTNER shall be required to perform and facilitate system tests for
         all equipment and components delivered under this Agreement.

55.3.2   The Commissioning tests shall comprise of the Sub-system Acceptance
         Tests and the Integrated System Acceptance Tests. A summary of the
         testing, commissioning and certification conditions are summarized in
         the table provided below:

<TABLE>
<CAPTION>
   NAME OF TEST                      CERTIFICATE                 CONDITION FOR CERTIFICATION
   ------------                      -----------                 ---------------------------
<S>                            <C>                             <C>
Factory Performance Test       No certification issued,                  None
                               but TELKOM should have
                               access to the results of
                               the test

Goods Delivery Test            Goods Delivery Certificate      Passes visual inspection

PARTNER Own Test               No certification issued, but              None
                               TELKOM should be provided with
                               the results of the test
                               prior to the Sub-system
                               Acceptance Test.

Sub-System                     No certification issued,
Acceptance Test                but TELKOM should be provided
                               with the results of the test
                               prior to the Integrated
                               System Acceptance Test.

Integrated System              Partial Integrated System       A system test has been
Acceptance Test                Acceptance Test Certificate     completed for the
                                                               equipment, satisfying all
                                                               relevant requirements
                                                               under this Agreement
                                                               except for end to end
                                                               connectivity
</TABLE>

                                      101
<PAGE>

<TABLE>
<CAPTION>
   NAME OF TEST            CERTIFICATE                 CONDITION FOR CERTIFICATION
   ------------            -----------                 ---------------------------
<S>                    <C>                             <C>
                       Integrated System Acceptance    All system tests have been
                       Test Certificate                completed for the equipment,
                                                       satisfying all relevant
                                                       requirements, including
                                                       end to end connectivity

Civil Work Acceptance  Certificate (for foundation)    Passed third party and/or
Test                   Certificate (for tower)/        TELKOM quality checks
                       Certificate (others)
</TABLE>

55.4     Factory Performance Test

55.4.1   PARTNER shall perform factory performance tests of all equipment to be
         deployed to ensure that the equipment is complete in all respects and
         complies with the terms of the Agreement. Details of the factory
         performance test are set out in Appendix 17 (Quality Assurance
         Guidelines/Acceptance Test Procedures).

55.4.2   PARTNER shall provide TELKOM with full access to the results of the
         factory performance tests including without limitation evidence in the
         form of certification letter provided by the factory.

55.4.3   Successful completion of the factory acceptance tests are a
         pre-requisite for Sub-System Acceptance Tests.

55.5     Goods Delivery Test

55.5.1   TELKOM shall visually inspect the equipment on delivery to the
         installation Location/Site based on a copy of the goods shipping
         documents and TELKOM's Project Manager shall promptly (and no later
         than five (5) Business Days) issue a Goods Delivery Certificate if
         there is no obvious physical damage to the equipment and the quantity
         of equipment delivered is correct according to the supporting
         Documentation provided.

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<PAGE>

55.5.2   Issue of a Goods Delivery Certificate shall not constitute acceptance
         of the equipment nor shall it affect TELKOM's rights under this
         Agreement.

55.6     PARTNER Own Test

55.6.1   PARTNER shall perform on-Location/Site tests of each individual
         Network Sub-system (BSS) following installation.

55.6.2   Successful completion of PARTNER's Own Tests are a pre-requisite for
         Sub-system Acceptance Tests.

55.6.3   The tests for BSS shall comprise of tests to determine the overall
         equipment functionality of:

         (a)      Base Station Controller (BSC);

         (b)      Base Transceiver System (BTS);

         (c)      Antenna;

         (d)      Transmission Equipment;

         (e)      BSS Network Element Manager (BSS NEM).

55.6.4   The tests for PDN shall comprise of tests to determine the overall
         equipment functionality of:

         (a)      Packet Data Serving Node (PDSN) device;

         (b)      Authentication, Authorization and Accounting (AAA);

         (c)      Home Agent (HA);

         (d)      Directory Number System (DNS);

         (e)      Fire Wall;

         (f)      PDN Network Element Manager (PDN NEM).

55.6.5   PARTNER shall provide TELKOM with the results of PARTNER's Own Tests
         when it requests TELKOM to attend the Commissioning.

55.7     Commissioning: Sub-System Acceptance Test

55.7.1   Upon completion of PARTNER Own Tests, PARTNER shall conduct tests of
         each individual Sub-system in the presence of TELKOM as a witness.

55.7.2   The tests shall be conducted during normal weekday working hours and
         PARTNER shall liaise with TELKOM at

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<PAGE>

         least fourteen (14) calendar days before the proposed test date to fix
         the timing and resources required for the test. PARTNER shall
         co-ordinate the test dates across the relevant DIVRE to ensure that the
         tests are scheduled efficiently.

55.7.3   Successful completion of the Sub-system Acceptance Tests are a
         prerequisite for Integrated System Acceptance Tests.

55.7.4   The tests for BSS shall comprise all tests necessary to verify the
         overall equipment functionality of:

         (a)      Base Station Controller (BSC);

         (b)      Base Transceiver System (BTS);

         (c)      Antenna;

         (d)      Transmission Equipment;

         (e)      BSS Network Element Manager (BSS NEM).

55.7.5   The tests for PDN shall comprise tests to verify the overall equipment
         functionality of:

         (a)      Packet Data Serving Node (PDSN);

         (b)      Authentication, Authorization and Accounting (AAA);

         (c)      Home Agent (HA);

         (d)      Directory Number System (DNS);

         (e)      Fire Wall;

         (f)      PDN Network Element Manager (PDN NEM).

55.7.6   In addition the following on-Location tests shall be conducted for each
         Sub-system:

         (a)      Mechanical, quantity and appearance checks;

         (b)      Workmanship checks;

         (c)      Construction, installation, cabling, wiring, fixing, equipment
                  foundation, painting and galvanizing, appearance and
                  mechanical strength and labelling checks;

         (d)      Meter and Alarm Indication check;

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<PAGE>

         (e)      Power supply checks;

         (f)      Losses contact checks.

55.7.7   PARTNER shall provide TELKOM with full access to the results of any
         Sub-system Acceptance Tests before initiating any Integrated System
         Acceptance Tests.

55.8     Commissioning: Integrated System Acceptance Test

55.8.1   PARTNER shall conduct Integrated System Acceptance Tests in the
         presence of TELKOM as a witness upon completion of the Sub-system
         Acceptance Tests (including tests on measuring equipment and spare
         parts) to ensure that a System is functioning as designed and ready for
         acceptance by TELKOM.

55.8.2   PARTNER shall prepare a comprehensive testing plan and test procedure
         for TELKOM's approval.

55.8.3   The smallest Network element that may be System tested shall be a BTS
         and its associated equipment. All System tests must be carried out on a
         end to end basis (i.e., PSTN to MSC to BSC to BTS to test subscribers)
         to verify that:

         (a)      the installed system complies with the Technical
                  Specifications of the Agreement; and

         (b)      the System has been demonstrated to be compatible with the
                  existing NSS and other Systems.

55.8.4   The tests shall be conducted during normal weekday working hours and
         PARTNER shall liaise with TELKOM at least ten (10) Business Days before
         the proposed test date to fix the timing and resources required for the
         test. PARTNER shall co-ordinate the test dates across the relevant
         DIVRE to ensure that the tests are scheduled efficiently.

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<PAGE>
55.8.5   In addition, PARTNER shall provide TELKOM with details of all
         transmission links and assistance to be provided by TELKOM. TELKOM may
         postpone the test date if the transmission links required cannot be
         provisioned in time.

55.8.6   TELKOM shall within ten (10) Business Days issue a Integrated System
         Acceptance Test Certificate for the equipment tested once:

         (a)      all the relevant System tests have been successfully
                  completed;

         (b)      all required test equipment and necessary tools have been
                  supplied; and

         (c)      all handbooks, as-built drawings, inventory list and other
                  information necessary for maintenance of the relevant System
                  have been supplied.

          The Integrated System Acceptance Test Certificate shall be issued on a
          per Location basis. In the event that any Sub-system or Site within
          the Location cannot be tested caused by any reason, a Partial
          Integrated System Acceptance Test Certificate may be issued for the
          Location covering only the Commissioned Sub-system (s) or Site (s).

55.8.7   In the event that TELKOM is unable to provide, where required, the
         necessary transmission links and/or an E1 link at the PSTN switch to
         connect the Network elements to each other, but it is shown that the
         relevant System otherwise fulfils all the requirements above, TELKOM
         shall issue a Partial Integrated System Acceptance Test Certificate
         within ten (10) Business Days.

55.8.8   15% of the applicable Contract Value for the equipment tested shall be
         payable on TELKOM's issuance of the Integrated System Acceptance Test
         Certificate or Partial Integrated System Acceptance Test Certificate,
         as the case may be. The applicable PAYG Payment Period shall commence
         only on issuance of the relevant Integrated System Acceptance Test
         Certificate.

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55.8.9   If TELKOM offers a System for commercial service which has not yet
         received an Integrated System Acceptance Test Certificate, then this
         System shall be deemed to have been tested and accepted and TELKOM
         shall issue the relevant Integrated System Acceptance Test Certificate
         in accordance with Article 55.9.6.

55.9     Civil Work Tests

55.9.1   PARTNER shall regularly inspect all civil works in progress on a
         continuous and/or interim basis, based on the civil work test plan
         submitted to and agreed by TELKOM. The test plan shall include the
         proposed frequency of the inspections and the test protocol to be used.
         The test protocol shall be in the form of worksheets to be used on
         Location/Site as the work progresses.

55.9.2   TELKOM will issue certificates at each stage of work once the civil
         work tests are successfully completed based on the agreed test
         protocol.

ARTICLE 56. INTEGRATION, INTEROPERABILITY AND COMPATIBILITY

56.1     Integration and Interconnection

56.1.1   The CDMA Network consisting of BSS shall interface with TELKOM's data
         network via a PDSN (Packet Data Serving Node) device as part of the PDN
         (Packet Data Network) supplied by PARTNER.

56.1.2   In particular, PARTNER shall ensure without limitation that:

         (a)      the BSS/BSC is integrated with TELKOM's NSS and PDN (Packet
                  Data Network) equipment; and

         (b)      all related Sub-systems within the BSS and PDN to be delivered
                  by PARTNER are integrated with each other.

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56.2     Interoperability Requirement

56.2.1   The BSS equipment must be interoperable with NSS equipment provided by
         other CDMA FWA vendor(s) and compatible with CDMA IOS version 4.0
         standards.

56.2.2   PARTNER shall provide TELKOM with supporting evidence in the form of a
         written statement or certificate from operators, certification body, or
         PARTNER stating operator's name and contact information, location,
         types of BSS equipment, and examples where interoperability occurs.
         TELKOM shall issue an IOP Certificate to PARTNER in accordance with the
         Interoperability Commitment Agreement following successful completion
         of its own interoperability (IOP) tests.

56.3     Compatibility

56.3.1   New software releases or versions shall be backwards compatible with
         the previous release and/or version and such other previous releases
         and/or versions where technically and commercially feasible.

ARTICLE 57. CUT OVER PROCEDURES

57.1     PARTNER shall ensure that the cut over of any equipment on the Network
         (for example, where a BTS is to be disconnected from an existing BSC
         and reconnected to a new BSC being installed or where a BSC is to be
         disconnected from an existing NSS and reconnected to a new NSS being
         installed) does not interfere with the operation of the Network.

57.2     PARTNER shall liaise with TELKOM as to the procedures and timing for
         the cut over and any cut over should take place during the hours of
         2:00 am - 4:00 am (the "Cut Over Period"), unless otherwise agreed by
         TELKOM.

57.3     PARTNER shall ensure that the previous connections can be
         re-established without any interruption to the Network in the event
         that the cut

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         over does not work properly or perform satisfactorily. In the event
         that the cut over appears unlikely to be completed during the Cut Over
         Period, PARTNER shall re-establish the previous connection and
         re-attempt the cut over the following day.

57.4     PARTNER shall indemnify TELKOM against any loss or damage suffered as a
         result of any interruption to the Network (including without limitation
         any service interruption or system downtime) occurring outside the Cut
         Over Period caused by a cut over that results in a revenue loss for
         TELKOM, in accordance with Article 11.

57.5     These cut over procedures shall also be applicable to Package 1.

ARTICLE 58. COMPLIANCE WITH ENVIRONMENTAL STANDARDS

58.1     The Deliverables supplied by PARTNER 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.

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

58.3     PARTNER shall provide TELKOM with the following information early
         enough to give TELKOM reasonable time to pass it on to all parties
         involved before Deliverables are received:

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

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58.3.2   where such substances and/or preparations are located in the equipment
         and how the components concerned must 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 removed from the equipment safely and correctly;

58.3.3   which 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

58.3.4   how to improve the information distribution/acquisition process at and
         by TELKOM to a reasonable extent without raising its costs.

58.4     PARTNER 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.

58.5     PARTNER 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.

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

ARTICLE 59. DEVELOPMENT OF MEDIATION DEVICE

PARTNER shall at TELKOM's request develop and provide interfaces to TELKOM's
customer care, billing and NMS. The cost of the development, (save in the case
of the mediation device for the NMS as already agreed in Appendix 4) shall be
agreed in advance with TELKOM and then added to the Contract Value of the
Purchase Order associated with the equipment with which the mediation device
will be used. 25% of the development costs shall be paid on commissioning of the
mediation device, and the remaining 75% paid by TELKOM in accordance with the
PAYG payment scheme for the associated equipment.

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ARTICLE 60. DOCUMENTATION

60.1     PARTNER 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 but not be limited to the
         following:

60.1.1   Installation and system handbooks;

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

60.1.3   Repair handbooks including block diagrams;

60.1.4   Customer handbooks for the fixed terminal shall include assembly
         drawings, wiring information, and complete instruction for
         familiarization, installation, maintenance, and parts replacement;

60.1.5   Customer handbooks for the mobile handset shall include only complete
         instruction for familiarization, maintenance and part replacement. All
         handbooks shall be prepared in English and the metric system of weights
         and measures should be used.

60.2     PARTNER shall maintain and keep updated a Project library in Indonesia
         containing all relevant documents related to the Project, including
         without limitation, minutes of each JPS, DRM and monthly meeting, all
         Purchase Orders, demand forecasts, Change Requests, each agreed
         revision of the Implementation Plan and all

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         correspondence between PARTNER, its sub-contractors and TELKOM. The
         Project library shall be accessible by TELKOM and its representatives
         during normal working hours and TELKOM may from time to time request
         copies of all or parts of the Project library to be supplied to it at
         no further cost. The Project library shall be handed over to TELKOM on
         termination of this Agreement.

60.3     PARTNER shall submit drawings and documents (including as-built,
         assembly, connection and allocation drawings) related to the relevant
         Systems and Sub-systems installed.

60.4     Any drawings and documents with respect to the relevant Systems or Sub-
         systems owned by PARTNER related to the relevant Deliverables shall be
         kept for the life-time of such System or Sub-system to enable PARTNER
         to procure any parts which need replacement and/or expansion of such
         System or Sub-system if so required at any time.

60.5     Any Intellectual Property Rights with respect to any equipment,
         drawings, specifications, software and Documentation and data which are
         issued by the respective Parties pursuant to the implementation of this
         Agreement shall remain the property of the respective Parties in
         accordance with this Agreement.

60.6     Any incompleteness, doubts with respect to breakdown and/or elaboration
         contemplated in any documents and/or those which constitute parts of
         this Agreement shall be presented to TELKOM for clarification.

60.7     As long as PARTNER is providing maintenance and support in accordance
         with this Agreement and the applicable SLA, the cost of updates to the
         Documentation shall be included in the fees paid by TELKOM to PARTNER
         pursuant to the relevant SLA. For the avoidance of doubt, the initial
         costs of the Documentation shall be payable under general services
         pursuance Article 33.

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60.8     All Documentation shall be in accordance with the requirements stated
         in the RfP. The standard documents required to be provided by PARTNER
         are listed in Appendix 22 (Documentation).

60.9     At the first JPS, PARTNER shall submit to TELKOM its plan to execute
         the Location/Site survey consisting, without limitation, of the
         following items:

60.9.1   time schedule;

60.9.2   manpower schedule;

60.9.3   team organization;

60.10    TELKOM will provide a letter of approval of the detailed Location/Site
         survey plan submitted by PARTNER, after it has agreed to the proposed
         content. PARTNER shall perform the Location/Site survey accompanied by
         TELKOM's assigned team as scheduled in the Location/Site survey plan.

60.11    PARTNER shall provide a Location/Site survey report ("Survey Report")
         for installation within two (2) weeks of the Location/Site survey. The
         Survey Report shall consist of the following items:

60.11.1  Location/Site layout, that shall include guide map, floor lay out and
         cable racking;

60.11.2  arrangement of terminal block and existing distribution frame;

60.11.3  arrangement of the sub distribution panel;

60.11.4  availability of supporting facility and other requirements;

60.11.5  availability of antenna space at the existing tower;

60.11.6  map of the site's path profile and, if required, the backhaul system
         for PARTNER'S equipment;

60.11.7  availability of port and link at TELKOM's exchanges; and

60.11.8  coverage map of each BTS;

60.12    PARTNER shall submit its final as-built drawings based on the Network
         configuration upon completion of the installation work.

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CHAPTER 6. SERVICE LEVEL AGREEMENTS

ARTICLE 61. SERVICE LEVEL AGREEMENTS

61.1     Operation and Maintenance Support Service Level Agreement

61.1.1   TELKOM has requested PARTNER to render certain operation and
         maintenance support services, and PARTNER has agreed to provide these
         services in accordance with a Service Level Agreement.

61.1.2   Prior to Commissioning of the Deliverables in the first Purchase Order,
         TELKOM and PARTNER shall enter into a Service Level Agreement in form
         and substance as set out in Appendix 19 to cover operation and
         maintenance spare parts and software services support. The initial
         term of the Service Level Agreement shall expire, unless earlier
         terminated in accordance with the SLA, three (3) years from the
         earliest to occur of: (a) the date of the first Integrated System
         Acceptance Test Certificate; or (b) commercial deployment of any of the
         equipment, software and components supplied by PARTNER. For the
         avoidance of doubt, any commercial use of PARTNER's equipment supplied
         under the initial interoperability testing required under Chapter 7
         shall be covered under the Service Level Agreement.

CHAPTER 7. INTER-OPERABILITY AND CO-ORDINATION REQUIREMENTS FOR PACKAGE 1 AND
           PACKAGE 2

ARTICLE 62. GENERAL

62.1     Subject to Article 14.2.1, this Chapter shall apply to Package 1 (DIVRE
         II) only.

62.2     PARTNER acknowledges that certain Network equipment for Package 1 is
         being supplied by other equipment vendor(s) and that achieving inter-
         operability between each vendor's

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         equipment is a key requirement of the T-21 Program. In particular,
         TELKOM requires that the NSS configuration be fully interoperable with
         BSS equipment from other CDMA FWA vendor(s) in accordance with Article
         56. The Parties recognise that until inter-operability has been
         achieved, service cannot begin in the DIVREs where more than one
         vendors are providing equipment. To achieve this aim, the Parties have
         entered into a separate interoperability commitment agreement with the
         other vendor(s) in Package 1.

62.3     In the event that the vendors are unable to achieve satisfactory
         interoperability by the end of the testing period, or by the end of the
         first quarter of 2003, whichever is earlier TELKOM may at its sole
         discretion:

         (a)      extend the testing period for such period as it thinks fit and
                  request the vendors to continue working towards
                  interoperability;

         (b)      stop further testing until further notice; or

         (c)      notify either of the vendors, or both as the case may be, that
                  based on a comprehensive technical review of the cause or
                  causes resulting in the failure of achieving inter-operability
                  as contemplated in this Agreement, TELKOM intends to exercise
                  its right to terminate this Agreement pursuant to Article
                  14.2, and that TELKOM reserves its right to claim from and to
                  be indemnified by PARTNER for its proportionate share of
                  Project-related costs for which it is responsible, which have
                  been suffered by TELKOM as a result of the failure of
                  achieving inter-operability.

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62.4     Following issuance of the IOP Certificate, the Parties acknowledge that
         certain additional modifications are required to this Agreement to
         allow inputs from each vendor at the JPS and DRMs and that they will
         deal expeditiously with any delays caused by one or more vendors which
         affect the other vendors.

ARTICLE 63. JPS, DRMs AND MONTHLY MEETINGS

63.1     At each JPS:

63.1.1   the demand forecasting and economic analysis shall be conducted by the
         vendor of the BSS equipment and TELKOM jointly, with the vendor of the
         NSS equipment providing comments only;

63.1.2   the prioritisation of Locations/Sites for network deployment of the BSS
         equipment shall first be conducted by the vendor of the BSS equipment
         and TELKOM jointly. The prioritisation of Locations for Network
         deployment of the NSS equipment shall follow on and be conducted by the
         vendor of the NSS equipment and TELKOM jointly; and

63.1.3   the technology review shall be conducted by all vendors and TELKOM
         jointly.

63.2     At each DRM:

63.2.1   each vendor shall be responsible for surveying their own deployment
         sites;

63.2.2   TELKOM and the vendor of the BSS equipment shall jointly calculate,
         check and update the Installed Line Procurements, with the vendor of
         the NSS equipment providing comments only;

63.2.3   the Deployment Plan for the BSS equipment for the next Quarter shall
         first be jointly developed, agreed and approved by the vendor of
         the BSS

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         equipment and TELKOM; then the Deployment Plan for the NSS equipment
         for the next Quarter shall be jointly developed, agreed and approved by
         the vendor of the NSS equipment and TELKOM;

63.2.4   TELKOM and each vendor shall develop, agree and approve their
         respective detailed network designs, BoQ, resource plans and training
         plans;

63.2.5   TELKOM and the vendors shall jointly discuss any changes which may be
         required to the Project Management Plans and Implementation Schedule,
         and in particular shall provide information on any potential delays or
         other matters which could affect the other vendor(s) or the overall
         deployment of the Network. TELKOM and each vendor shall then jointly
         agree and approve any adjustments to their respective plans and
         schedules taking into account the information provided by the other
         vendor(s).

63.3     TELKOM may from time to time request the vendors to attend together the
         monthly meetings to allow information sharing and joint discussions to
         take place.

ARTICLE 64. COMMISSIONING TESTS

64.1     The Parties acknowledge that in order to test the Network end to end,
         each Network component (MSC, BSC and BTS) must be interconnected and be
         available for testing during the period scheduled for the Integrated
         System Acceptance Tests.

64.2     The Integrated System Acceptance Tests shall be conducted during normal
         weekday working hours and PARTNER seeking to test its equipment shall
         co-ordinate with TELKOM and the other vendor(s) at least fourteen (14)
         calendar days before the proposed test date to fix the timing and
         resources required for the test. PARTNER shall co-ordinate the test
         dates across the relevant DIVRE to ensure that the tests are scheduled
         efficiently.

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64.3     Each vendor shall upon receipt of the notice promptly inform TELKOM and
         the other vendor(s) whether its equipment has completed the required
         Sub-system Acceptance Tests, and if not when such tests are scheduled
         for and if it expects any delay to its agreed completion dates.

64.4     TELKOM may reschedule the proposed test date by up to one (1) month to
         address any delays which are attributable to other vendors. In the
         event that the other vendor's equipment is still not available for
         testing after the one month grace period, but it is shown that the
         vendor's system otherwise fulfils all the Integrated System Acceptance
         Test requirements, TELKOM shall issue a Partial Integrated System
         Acceptance Test Certificate to the vendor.

64.5     For the avoidance of doubt, the testing and Commissioning procedures
         for Package 1 are provided in Article 55.

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<PAGE>

IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their
duly authorized representatives on the day and year first above written.

PERUSAHAAN PERSEROAN (PERSERO)           ERICSSON CDMA CONSORTIUM
PT TELEKOMUNIKASI INDONESIA TBK.
                                         ERICSSON WIRELESS COMMUNICATION INC.

                                                       [STAMP]

By /s/ Kristiono                         By /s/ Mark Cratsenburg
  ---------------------------              ------------------------------
Name   :  Kristiono                      Name  : Mark Cratsenburg
Title  :  President Director             Title : Attorney-in-Fact of Ericsson
                                                 Wireless Communication Inc.

                                         PT ERICSSON INDONESIA

                                         By /s/ Ulf Mansson
                                            -----------------------
                                         Name  :  Ulf Mansson
                                         Title :  President Director

                                         PT INFRACELL NUSATAMA

                                         By /s/ Djoko N. Labbaika
                                           --------------------------
                                         Name  : Djoko N. Labbaika
                                         Title : President Director

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