Document:

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                                                                    Exhibit 4.33

                 THAILAND - INDONESIA - SINGAPORE CABLE NETWORK
                      CONSTRUCTION & MAINTENANCE AGREEMENT

                  TELKOM REF. NO. PKS.211/HK.910/UTA-00/2002

                              DATED NOVEMBER 27, 2002
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                 THAILAND - INDONESIA - SINGAPORE CABLE NETWORK
                      CONSTRUCTION & MAINTENANCE AGREEMENT

                   TELKOM Ref. No. PKS, 211/HK.910/UTA-00/2002

THIS AGREEMENT, made and entered into this 27th day of November 2002, between
and among the Parties signatory hereto (hereinafter collectively referred to as
the "Parties" and individually referred to as the "Party"), which Parties are
identified in Schedule A,

WITNESSETH:

         WHEREAS, the Parties acknowledge that the tremendous growth in the
telecommunications traffic in South East Asia warrants the implementation of a
new high capacity fiber optic cable system with Cable Landing Points in
Thailand, Indonesia and Singapore (hereinafter referred to as "TIS") to support
such demand and to connect to existing and planned South East Asian cable
systems;

         WHEREAS, the Parties acknowledge that the existing cables in South East
Asia would be fully utilized in the next few years;

         WHEREAS, the Parties wish to acquire capacity at the highest quality on
an ownership basis;

         WHEREAS, CAT, TELKOM and SINGTEL signed a Memorandum of Understanding
to plan the TIS effective from 13 May 2002 (hereinafter referred to as the
"MOU") to permit activities, as defined in the MOU; and

         WHEREAS, the MOU shall continue to be in force until the signing, by
the Parties, of this Agreement, which is the TIS Construction and Maintenance
Agreement (hereinafter referred to as the "C&MA" or "Agreement"); and

         WHEREAS, the Parties now desire to construct the TIS comprised of two
(2) fiber optic pairs; and

         WHEREAS, the Parties now desire to define the terms and conditions upon
which the TIS will be provided, constructed, operated and maintained.

         NOW, THEREFORE, the Parties hereto, in consideration of the mutual
covenants herein expressed, covenant and agree with each other as follows:

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1        DEFINITIONS AND INTERPRETATIONS

1.1      The following definitions and interpretations shall apply to certain
         terms used in this Agreement:

         (a)      ASSOCIATE COMPANY: A company is the Associate of another if
                  either company owns directly no less than 20% of its equity.

         (b)      CABLE LANDING POINT: Cable Landing Point shall be the beach
                  joint or the mean low watermark of ordinary spring tides if
                  there is no beach joint.

         (c)      CAPACITY: Capacity shall be expressed in terms of two (2) half
                  MIUs and shall be classified as follows:-

                  ALLOCATED CAPACITY: Capacity allocated in the TIS to Specific
                  Parties and which comprises Assigned Capacity, Defined
                  Capacity and Reserved Capacity.

                  ASSIGNED CAPACITY: Capacity which is assigned to the Parties
                  in specific Paths of the TIS.

                  DEFINED CAPACITY: Capacity acquired by a Party for transfer on
                  an IRU basis to other Carriers pursuant to Subparagraph 14.10.

                  DESIGN CAPACITY: the maximum capacity that the TIS is designed
                  to provide which shall be no less than 160 Gbit/s per
                  fiber pair.

                  EQUIPPED CAPACITY: the amount of capacity physically provided
                  in the TIS.

                  INITIAL EQUIPPED CAPACITY: Initial Equipped Capacity of the
                  TIS shall be 30 Gbit/s.

                  IRU CAPACITY: Capacity acquired after execution of this
                  Agreement on an IRU basis.

                  RESERVED CAPACITY: Capacity which is acquired by a Party for
                  its intended future assignments pursuant to Subparagraph 14.7.

                  UNALLOCATED CAPACITY: the difference in capacity between the
                  Design Capacity and the Allocated Capacity.

                  UNASSIGNED CAPACITY: Capacity which comprises the Defined
                  Capacity and/or Reserved Capacity.

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         (d)      CARRIER: Any entity authorized or permitted under the laws of
                  its respective Country, or another Country in which it
                  operates, to acquire and use international transmission
                  facilities for the provision of international
                  telecommunications services and which is in possession of any
                  necessary operating license to enable it to do so.

         (e)      COUNTRY: The word Country as used in this Agreement shall mean
                  a country, territory or place, as appropriate.

         (f)      FINAL ACCEPTANCE: The issuance of a Certificate of Final
                  Acceptance pursuant to the terms and conditions set forth in
                  the Supply Contract(s).

         (g)      INITIAL PARTIES: Initial Parties are CAT, TELKOM and SINGTEL.

         (h)      IRU: Indefeasible Right of Use which does not convey ownership
                  and voting rights in the management of the TIS.

         (i)      IRU PURCHASERS: shall mean any Carrier that purchase IRU of
                  the TIS.

         (j)      LINK: The physical optical fibre pair(s) between the Network
                  Interfaces at the Terminal Stations (excluding Terminal
                  Stations) of one Terminal Party and another Terminal Party.
                  The Links of the TIS shall be as follows :-

                  (i)      Thailand - Singapore Link;

                  (ii)     Singapore - Indonesia Link.

         (k)      MINIMUM INVESTMENT UNIT: A unit designated as the minimum unit
                  of investment in the TIS, allowing the use of two (2) half
                  STM-l circuits on any Path within the TIS. The Minimum
                  Investment Unit is hereinafter termed as a "MIU".

         (l)      NETWORK INTERFACE: the nominal STM-1 digital/optical
                  input/output ports, and/or STM-4, STM-16 and STM-64 on the
                  digital/optical distribution frame (including the
                  digital/optical distribution frame itself) where the basic
                  system payload module connects/aggregates with other
                  transmission facilities or equipment.

         (m)      PATH: The connectivity in the TIS between any two Terminal
                  Stations, independent of the actual Link(s) used to connect
                  these Terminal Stations. The Paths of the TIS shall be as
                  follows:-

                  (i)      Thailand-Singapore Path;

                  (ii)     Singapore - Indonesia Path; and

                  (iii)    Thailand - Indonesia Path.

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         (n)      NETWORK ACCEPTANCE: The issuance of Certificate of Network
                  Acceptance pursuant to the terms and conditions as set forth
                  in the Supply Contract(s).

         (o)      READY FOR NETWORK ACCEPTANCE DATE: The date on which the
                  entire Segment S of the TIS is provisionally accepted by the
                  Procurement Group (hereinafter referred to as the "PG") on
                  behalf of the Parties. The Ready for Network Acceptance Date
                  (hereinafter referred to as the "RFNA Date") shall be 27
                  November 2003, or such other date as may be agreed by the
                  Management Committee (hereinafter referred to as the "MC").

         (p)      READY FOR SERVICE DATE: The date on which commercial service
                  can be placed on the entire TIS. For the purposes of this
                  Agreement, the Ready for Service Date shall be on or before 5
                  December 2003, or such other date as may be agreed by the MC
                  established pursuant to Subparagraph. 3.1 hereof (hereinafter
                  referred to as the "RFS Date").

         (q)      SIE: Synchronous Digital Hierarchy/Interconnecting Equipment.

         (r)      SUPPLY CONTRACT: The contract(s) placed by the PG on behalf of
                  the Parties for the supply of Segment S of the TIS.

         (s)      TERMINAL PARTIES: The Terminal parties are CAT, TELKOM and
                  SINGTEL.

         (t)      TERMINAL STATION: The cable landing station at the Cable
                  Landing Points.

1.2      Schedules and Annexes

         The Schedules and Annexes to this Agreement, and any written amendments
         thereto or any Schedules or Annexes substituted therefore, shall form
         part of this Agreement, and any Paragraph which contains a reference to
         a Schedule or Annex shall be read as if the Schedule or Annex was set
         out at length in the body of the Paragraph itself. In the event that
         there is any conflict between the terms and conditions of this
         Agreement and the Schedules and Annexes to this Agreement, the terms
         and conditions of this Agreement shall prevail.

1.3      Interpretation

         Where the sense requires, words denoting the singular only shall also
         include the plural and vice versa. References to persons shall include
         firms and companies and vice versa. Reference to the male shall include
         the female.

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2.       TIS CONFIGURATION, PLANNING AND DEVELOPMENT

2.1      The configuration of TIS shall be as shown in Annex 3.

2.2      The planning and development of the TIS shall be based on the use of
         proven technology judged suitable for implementation of the TIS at the
         RFS Date employing the appropriate transmission rate necessary to meet
         the capacity requirements of the Parties, which shall be initial at 3 x
         9.95328 Gbits per second (30 Gbits/s) or higher.

3.       MANAGEMENT COMMITTEE

3.1      For the purpose of directing the progress of the engineering,
         provision, installation, bringing into service and continued operation
         of the TIS, the Parties shall form a Management Committee (hereinafter
         referred to as "MC), consisting of a Chairman and one representative
         from each of the Parties to this Agreement. Except as otherwise stated
         in this Agreement, which exception shall include decisions on
         procurement which shall be made by the Procurement Group (hereinafter
         referred to as "PG") in accordance with Paragraph 7, the MC shall make
         all major decisions necessary on behalf of the Parties to effectuate
         the purposes of this Agreement, including bat not limited to, the
         placement of the TIS and its associated Terminal Stations, or any
         portion thereof into service prior to or on or after the RFS Date.

3.2      Two or more Parties may designate the same Party to serve as their
         representative at specific meetings of the MC and/or its Subcommittees
         established pursuant to Subparagraph 3.7 of this Agreement.

3.3      Each of the Parties shall, on a rotational basis, provide the Chairman
         of the MC. The MC will meet on the call of a Chairman or whenever
         requested by one or more Parties together representing at least thirty
         three point three three per cent (33.33%) of the total voting interests
         specified in Schedule B. The Chairman shall give at least thirty (30)
         days advance notice of each meeting to each of the Parties hereto,
         together with a copy of the draft agenda. In cases of emergency, such
         notice period may be reduced where at least sixty six point six seven
         percent (66.67%) of the total voting interests an in agreement.
         Documents for the meeting should be made available to members at least
         fourteen (14) days before the meeting, but the MC may agree to discuss
         papers distributed on less than fourteen (14) days' notice.

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3.4      All decisions made by the MC shall be subjected; in the first place, to
         consultation among the Parties, which shall make every reasonable
         effort to reach agreement with respect to matters to be decided.
         However, in the event an agreement cannot be reached, the decision will
         be carried on the basis of a vote, representing seventy five percent
         (75%) of the total voting interests specified in Schedule B. Votes of
         the members of the MC shall be weighted in proportion to the relative
         voting interests as specified in Schedule B of the Parties they
         represent. A member of me MC representing more than one Party shall
         separately cast the votes to which each Party he represents is
         entitled.

3.5      Any Party not represented at a MC meeting, but entitled to vote, may
         vote on any matter on the agenda of such meeting by either appointing a
         proxy in writing, or giving notice of such vote to the Chairman prior
         to the submission of such matters for vote at such meetings.

3.6      No decisions of the MC, its subcommittees or any other groups
         established by the MC shall override any provisions of this Agreement
         or in any way diminish the rights or prejudice the interests granted to
         any Party under this Agreement.

3.7      The following subcommittees shall be formed, comprised of
         representatives of each Party, to aid the MC in the performance of its
         duties. The said subcommittees, under the direction of the MC, shall be
         responsible for their respective areas of interest listed in Annex 1 of
         this Agreement and any other areas of interest designated by the MC:

         (i)      Technical and Operational Subcommittee (hereinafter referred
                  to as "T&OSC");

         (ii)     PG;

         (iii)    Financial and Administration Subcommittee (hereinafter
                  referred to as "F&ASC").

3.8      The Parties shall appoint among themselves the Chairman or Co-Chairmen
         of the T&OSC and F&ASC, each of which subcommittees shall meet at least
         annually after the effective date of this Agreement and more frequently
         if necessary, until two (2) years following the RFS Date and thereafter
         as may be appropriate. Meetings of a subcommittee may be called to
         consider specific questions at the discretion of its Chairman, or
         Co-Chairmen, or whenever requested by one or more Parties representing
         at least thirty three point three three percent (33.33%) of the total
         voting interests specified in Schedule B.

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3.9      The respective Chairman or Co-Chairmen of each subcommittee, or a
         designated representative of each subcommittee, shall attend the MC
         meetings and meetings of each other subcommittee in an advisory
         capacity as necessary. On or about two (2) years after the RFS Date,
         the MC shall determine whether any of its subcommittees should remain
         in existence. If the MC determines that one or more of its
         subcommittees shall not remain in existence, the responsibilities
         assigned to a subcommittee whose existence has been terminated under
         this Subparagraph 3.9 shall revert to the MC unless otherwise provided
         for in this Agreement.

3.10     The Network Administrator (hereinafter referred to as "NA") shall be
         appointed by the MC.

3.11     The Terms of Reference and appointment arrangement for the NA are as
         set forth in Annex 2 of this Agreement.

3.12     The Terms of Reference of all the subcommittees, the NA established
         pursuant to this Paragraph 3 shall be amended by the MC as and when it
         is necessary.

4.       TIS SEGMENTS

4.1      In accordance with the arrangements contained in this Agreement, the
         TIS shall be engineered, provided, constructed, maintained and operated
         between a terminal in Thailand, a terminal in Indonesia and a terminal
         in the Singapore, which for purposes of this Agreement, shall be
         regarded as consisting of the following segments:

                 Segment S: The whole of the submarine cable provided between
                            and among, including, the TIS Network Interfaces at
                            the Terminal Stations at Songkhla, Thailand; Changi,
                            Singapore and Batam, Indonesia.

                 Segment T1: A Terminal Station at Songkhla, Thailand

                 Segment T2: A Terminal Station at Changi, Singapore

                 Segment T3: A Terminal Station at Batam, Indonesia

4.2      Segments T1, T2 and T3 shall each consists of:

         (i)     an appropriate share of land, civil work and buildings at the
                 specified locations for the cable landing and for the cable
                 route including cable rights-of-way and ducts between a
                 Terminal Station and its respective Cable Landing Point and an
                 appropriate share of common services and

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                  equipment at each of those locations together with equipment
                  in each of those Terminal Stations which is solely associated
                  with the TIS, but not a part of Segment S; and

         (ii)     multiplex and/or digital cross connect equipment, SIE, Add
                  Drop Multiplexers (hereinafter referred to as "ADM") or an
                  appropriate share thereof in each of the Terminal Stations as
                  required to operate and interface between the TIS Network
                  Interface and the nominal 155 Mbit/s operating point,
                  associated solely and directly with assigned capacity entering
                  or leaving the TIS.

4.3      Segment S shall be regarded as consisting of the following Subsegments:

         SUBSEGMENT S1:

         The whole of the submarine cable containing two (2) optical fiber pairs
         provided between and including the TIS Network Interface at the
         Terminal Station at Songkhla and the TIS Network Interface at the
         Terminal Station at Changi.

         SUBSEGMENT S2:

         The whole of the submarine cable containing two (2) optical fiber pairs
         provided between and including the TIS Network Interface at the
         Terminal Station at Changi and the TIS Network Interface at the
         Terminal Station at Batam.

4.4      Segment S shall include:

         (i)      all transmission, power feeding and test equipment directly
                  associated with submersible plant;

         (ii)     the power equipment provided wholly for use with the equipment
                  listed in (i) above;

         (iii)    the transmission cable equipped with appropriate repeaters and
                  joint housings between the Terminal Stations;

         (iv)     the power feed earth system or an appropriate share thereof,
                  associated with terminal power feeding equipments; and

         (v)      multiplexing and/or digital cross connect equipment or an
                  appropriate share thereof, down to the 155 Mbit/s level in
                  each of the Terminal Stations as required and approved by the
                  MC, associated solely and directly with assigned capacity
                  transiting between any two interconnecting Links in the TIS.

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5        PROVISION AND CONSTRUCTION OF SEGMENTS T1, T2 AND T3

5.1      Segment T1 of the TIS shall consist of an appropriate share of the
         existing Terminal Station at Songkhla and shall be provided by CAT.

5.2      Segment T2 of the TIS shall consist of an appropriate share of the
         existing Terminal Station at Changi and shall be provided by SINGTEL.

5.3      Segment T3 of the TIS shall consist of an appropriate share of the
         existing Terminal Station at Batam and shall be provided by TELKOM.

5.4      Each Terminal Party shall bear its own Segment T capital costs in the
         initial construction of the TIS.

6        OWNERSHIP OF SEGMENTS

6.1      Segment S of the TIS shall be owned by the Parties in common and
         undivided shares, in the proportions set forth in Schedule B. Ownership
         of Segment S shall vest in the Parties immediately upon ownership
         vesting in the PG in accordance with the Supply Contract(s).

6.2      Segment T1 of the TIS shall be owned by CAT

6.3      Segment T2 of the TIS shall be owned by SINGTEL

6.4      Segment T3 of the TIS shall be owned by TELKOM

6.5      Each segment or sub-segment shall be regarded as including its related
         spare and stand by units and components, including but not limited to,
         submersible repeaters, cable length and terminal equipment where
         appropriate.

7        SUPPLY OF SEGMENT S

7.1      The supply of Segment S shall be through the Supply Contract to be
         placed by the PG with supplier(s) subject to approval by the MC.

7.2      Each of the Parties shall be entitled, on request and its own expense,
         to receive from the PG a copy of the Supply Contract subject to the
         acceptance by each such Party of any reasonable conditions of
         confidentially imposed by the Supply Contract.

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7.3      The PG shall ensure that the Supply Contract specify that Segment S of
         the TIS provided pursuant to the Supply Contract shall be ready for
         Network Acceptance on or before 27 November 2003. However, the Parties
         recognize and agree that the PG does not warrant or guarantee that
         Segment S of the TIS shall be ready for Network Acceptance on the date
         specified in the Supply Contract

7.4      The PG shall ensure that the Supply Contract shall afford them or their
         designated representatives reasonable rights of access to examine, test
         and inspect the TIS submarine cable equipment material, supplies and
         installation activities.

7.5      In the event that Segment S fails to meet the specifications referenced
         in the Supply Contract for its provision, fails to provide the
         specified capacity, or is not engineered, provided, installed and ready
         in sufficient time to meet the RFNA Date specified in the Supply
         Contract or if the supplier(s) are otherwise in material breach of the
         Supply Contract, the PG, as an agent of the Parties to this Agreement
         may pursuant to this Paragraph 7 and in accordance with the Supply
         Contract take such actions as may be necessary to exercise the rights
         and remedies available under the terms and conditions of the Supply
         Contract Such actions by the PG shall be subject to any direction
         deemed necessary by the MC.

7.6      The members of the PG shall not be liable to any other Party for any
         loss or damage sustained by reason of a supplier's failure to perform
         in accordance with the terms and conditions of its Supply Contract or
         as a result of the TIS not being ready for network acceptance on or
         before the RFNA Date specified in the Supply Contract or if the TIS
         does not perform in accordance with the technical specifications and
         other requirements of the Supply Contract or the TIS is not integrated
         or placed into operation. The Parties recognize that the PG does not
         guarantee or warrant (i) the performance of the Supply Contract by the
         supplier(s), (ii) the performance or reliability of Segment S of the
         TIS, or (iii) that the TIS will be integrated or placed into operation.
         And the Parties hereby agree that nothing in this Agreement shall be
         constructed as such a warranty or guarantee.

8        DEFINITION OF SEGMENT S CAPITAL COSTS

8.1      The Segment S capital costs (hereinafter referred to as Segment S
         Capital Costs), as used herein, refer to costs incurred in connection
         with engineering, providing, constructing, laying and installation of
         Segment S of the TIS; or causing it to be engineered, provided and
         constructed, and shall include:

         (i)      financial charges attributable to other Parties' shares of
                  such costs incurred under the MOU in respect of the TIS;

         (ii)     those costs payable to the supplier(s) under the Supply
                  Contract;

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         (iii)    those costs directly incurred by the Terminal Parties which
                  shall be fair and reasonable in amount and not included in the
                  Supply Contract, and which have been directly and reasonably
                  incurred for the purpose of, or to be properly chargeable in
                  respect of, such engineering, provision, construction,
                  installation and laying of Segment S, including but not
                  limited to the costs of engineering, design, materials,
                  manufacturing, procurement and inspection, installation,
                  removing (with appropriate reduction for salvage) cable ship
                  and other ship costs, route survey, burying, testing
                  associated with laying or installation, customs duties taxes
                  (except income tax imposed on the net income of a Party),
                  financial charges attributable to other Parties' shares of
                  costs incurred, supervision, billing activities, overheads and
                  insurance or a reasonable allowance in lieu of insurance if
                  such Party elects to carry a risk itself being a risk which is
                  similar to one against which a supplier has insured or against
                  which insurance is usual or recognized or would have been
                  reasonable.

         (iv)     those costs and expenses incurred by the NA Up to the RFS Date
                  in fulfilling its responsibilities as set forth in Annex 2;

         (v)      The Segment S Capital Costs shall include PG meeting costs but
                  exclude costs incurred by the Parties hereto in holding of MC
                  meetings and meetings of its subcommittees or groups
                  established pursuant to Subparagraph 3.7.

8.2      The Segment S Capital Costs shall also include the costs of any
         additional work and multiplex and/or digital cross connect equipment,
         SIE, ADM or an appropriate share thereof, down to the 155 Mbit/s level,
         as required and approved by the MC, associated solely and directly with
         assigned capacity transiting between any two interconnecting Links in
         the TIS, which may be incorporated in the Segment S subsequent to the
         RFS Date.

9.       DEFINITION OF OPERATION AND MAINTENANCE COSTS

9.1      The costs of operation and maintaining Segment S of the TIS up to beach
         manhole (hereinafter referred to as the "Segment S O&M Costs"), shall
         be shared by the Parties in the relevant proportions specified in
         Schedule C2. The cost for operation and maintenance of land cable from
         beach manhole to terminal station shall be part of the Segment T O&M
         costs.

9.2      The costs associated with Segment S O&M Costs are the costs reasonably
         incurred in the operation and maintenance of Segment S, including, but
         not limited to:

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         (i)      the cost of attendance, testing, adjustments, storage of plant
                  and equipment, repairs (including repairs at sea) and
                  replacements, cable ships (including an appropriate share of
                  standby costs), cable deports, reburial and replacement of
                  plant, tools and test equipment, customs duties, taxes,
                  (except income tax imposed upon the net income of & Party)
                  paid in respect of such facilities, billing activities,
                  financial charges attributable to other Carriers' shares of
                  costs incurred by a maintenance authority (hereinafter
                  referred to as "Maintenance Authority" which have the same
                  meaning ascribed thereto under Subparagraph 12.7 herein),
                  supervision, overheads and costs and expenses reasonably
                  incurred on account of claims made by or against other persons
                  in respect of such facilities or any part thereof and damages
                  or compensation payable by the Party concerned on account of
                  such claims. Costs, expenses damages, or compensation payable
                  to the Parties on account of claims made against other
                  persons, shall be subjected to MC approval and shall be shared
                  by the Parties in the proportions specified in Schedule C.

         (ii)     those fees payable to the NA, after the RFS Date, in
                  fulfilling its responsibilities as set forth in Annex 2;

9.3      The costs referred to in Subparagraph 9.2 above shall exclude costs
         incurred by the Parties hereto in the hosting of the meetings of the MC
         and the subcommittees or groups pursuant to Subparagraph 3.7 or in the
         attendance by the Parties' representative of such meetings after the
         RFS Date unless approved by the MC.

10       ALLOCATION AND BILLING OF SEGMENT S CAPITAL AND OPERATION AND
         MAINTENANCE COSTS

10.1     The Segment S Capital Costs as defined in Paragraphs S shall be borne
         by the Initial Parties, in the proportions as set forth in Schedule Cl.
         The Segment S Capital Costs for the Initial Parties shall be billed by
         Supplier in accordance with the Supply Contract. The NA shall bill
         Additional Parties according to their purchase price and reimburse the
         Initial Parties according to Schedule C1.

10.2     The Segment S O&M Costs as defined in Paragraph 9 shall be borne by the
         Parties, in the proportions as set forth in Schedule C2.

10.3     Unless the MC authorizes changes to the procedure for the rendering of
         bills associated with me Segment S Capital Costs or Segment S O&M
         Costs, the NA or Terminal Parties shall promptly render bills
         respectively, in accordance with this Paragraph 10 and the billing and
         payment procedures established by the F&ASC and approved by the MC, to
         each of the Parties for such Party's pro rata shares of these costs in
         accordance with Schedule Cl and C2 respectively. Such bills shall be
         rendered by NA or Terminal Parties not more frequently than

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         quarterly and shall contain a reasonable amount of detail to
         substantiate them. On the basis of such bills, each Party shall pay NA
         or the Terminal Parties such amounts as may be owed by the end of the
         calendar month following the calendar month in which the bill was
         rendered.

10.4     In the case of bills containing costs billed on a preliminary billing
         basis, appropriate adjustments will be made in subsequent bills
         promptly after the actual costs involved are determined. As soon as
         practicable, NA and the Terminal Parties shall make such adjustments
         and render such bills or arrange for such credits as appropriate due to
         changes in the cost actually incurred.

10.5     For purposes of this Agreement, financial charges shall be computed as
         applicable on a daily basis from the date the cost is incurred until
         the date payment is due, at a rate equal to the lowest publicly
         announced prime rate or minimum commercial lending rate, however
         described, for ninety (90) days loans in the currencies of the Parties
         or the currency of billing, as applicable, charged by established
         commercial banks in the countries concerned on the fifteenth day of the
         month in which the costs were incurred by the invoicing Parties. If
         such a day is not a business day, the rate prevailing on the next
         business day shall be used. The source of the rate of such financial
         charges shall be as shown at Annex 4. The application of financial
         charges relating to costs incurred for the Segment S Capital Costs and
         Segment S O&M Costs shall be limited to a maximum of one hundred twenty
         (120) days, unless otherwise approved by the MC.

10.6     Amounts billed and not paid when due shall accrue extended payment
         charges from the day following the date on which payment was due until
         paid. If the due date is not a business day, the due date shall be
         postponed to the next business day. For the purpose of this Agreement,
         extended payment charges shall be computed at three hundred percent
         (300%) of the rate described in Subparagraph 10.5 on the day following
         the date payment of the bill was due. In the event that applicable law
         does not allow the imposition of extended payment charges at the rate
         established in accordance with this Subparagraph 10.6, extended payment
         charges shall be at the highest rate permitted by applicable law, which
         in no event shall be higher than the rate computed in accordance with
         this Subparagraph 10.6. For purposes of this Agreement, "paid" shall
         mean that the funds are immediately available for use by the recipient.

10.7     Credits for refund of financial charges and bills for extended payment
         charges shall not be rendered if the amount of charges involved is less
         than the equivalent of one hundred ($100) US dollars or its equivalent
         in the billing currency.

10.8     A bill shall be deemed to have been accepted by the Party to whom it is
         rendered if that Party does not present a written objection on or
         before the date when payment is due. If such objection is made, the
         Parties concerned shall make every reasonable effort to settle promptly
         the dispute concerning the bill in question. If the objection is
         sustained and the billed Party has paid the disputed bill, the

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         agreed upon overpayment shall be promptly refunded to the objecting
         Party by the invoicing Party together with any financial charges
         calculated thereon at a rate determined in accordance with Subparagraph
         10.5 of this Agreement from the date of payment of the bill to the date
         on which the refund is transmitted to the objecting Party. If the
         objection is not sustained and the billed Party has not paid the
         disputed bill, the said Party will pay such bill promptly together with
         any extended payment charges calculated thereon at a rate determined
         in accordance with Subparagraph 10.6 of this Agreement from the day
         following the day on which payment was due until paid. Nothing in this
         Subparagraph 10.8 shall relieve a Party from paying those parts of a
         bill that are not in dispute.

11.      CURRENCY OF PAYMENT

         All bills rendered to the Party shall be in the currency of the United
         States or in the currency of the billing Party which is specified in
         Annex 4 or the currency in which the cost was incurred in the case of
         Segment S O&M Costs. Such bills shall be paid in the currency in which
         the bills are rendered. In conjunction with the NA and Terminal
         Parties, the F&ASC shall develop procedures to deal with the
         differences between the exchange rates.

12       DUTIES AND RIGHTS AS TO OPERATION AND MAINTENANCE OF SEGMENTS

12.1     CAT shall be solely responsible for the operation and maintenance of
         Segment T1 and that portion of Segment S between the TIS Network
         Interface at the Terminal Station at Songkhla and its respective Cable
         Landing Point. CAT shall use all reasonable efforts to operate and
         maintain or cause to be operated and maintained Segment T1 and the said
         portion of Segment S, economically and in efficient working order.

12.2     SINGTEL shall be solely responsible for the operation and maintenance
         of Segment T2 and those portions of Segment S between the TIS Network
         Interfaces at the Terminal Station at Changi and its respective Cable
         Landing Points. SINGTEL shall use all reasonable efforts to operate and
         maintain or cause to be operated and maintained Segment T2 and those
         said portions of Segment S, economically and in efficient working
         order.

                                     - 14 -
<PAGE>

12.3     TELKOM shall be solely responsible for the operation and maintenance of
         Segment T3 and those portions of Segment S between the TIS Network
         Interfaces at the Terminal Station at Batam and its respective Cable
         Landing Points. TELKOM shall use all reasonable efforts to operate and
         maintain or cause to be operated and maintained Segment T3 and those
         said portions of Segment S, economically and in efficient working
         order.

12.4     The Terminal Parties (for the purpose of this Agreement, collectively
         called the "Maintenance Authorities" and individually called the
         "Maintenance Authority" or "MA") shall be responsible for the overall
         operation and maintenance of those portions of Segment S connecting the
         respective Terminal Parties' Cable Landing Points, economically and
         efficient working order and with an objective of achieving effective
         and timely repairs when necessary. The Segment S operation and
         maintenance procedures shall be established by the MA following
         consultation with the T&OSC, as appropriate. The MA shall perform their
         responsibilities in a manner consistent with those maintenance
         agreements applicable to the TIS.

12.5     Such responsibilities shall be apportioned between and among the
         Terminal Parties as they may mutually agree. The responsibilities for
         the Segment S operation and maintenance shall be reviewed, and
         recommendations shall be made to the MA as appropriate, by the T&OSC.
         The MA shall use all reasonable efforts to operate and maintain or
         cause to be operated and maintained economically the Segment S of the
         TIS in efficient working order.

12.6     The MA shall have the right to deactivate Segment S, or any part
         thereof, in order to perform their duties. Prior to such deactivation,
         reasonable notice shall be given to, and coordination shall be made
         with the other Carriers. To the extend possible, sixty (60) days prior
         to initiating action, the MA involved shall advise the other Carriers
         in writing of the timing, scope, and costs of significant planned
         maintenance operations; of significant changes to existing operations
         and maintenance methods; and of contractual arrangements for cable
         ships or other maintenance facilities or devices that will have a
         significant impact on operation or maintenance costs. Should one or
         more Parties representing at least seventy five percent (75%) of the
         total voting interests in the TIS specified in Schedule B wish to
         review such operation or change prior to its occurrence, such Party or
         Parties shall notify the appropriate MA and the T&OSC Chairman or Co-
         Chairmen in writing thirty (30) days of such advice. Upon such
         notification, the T&OSC shall initiate action to convene an ad hoc
         meeting for such review.

12.7     Each Party that has designed or procured equipment used in the TIS
         shall give necessary information relating to the Segment S operation
         and maintenance of the equipment to the MA responsible for the Segment
         S operation and maintenance of such equipment. Each MA with
         responsibility for the maintenance of any segment or portion of any
         segment of the TIS shall have prompt access necessary

                                     - 15 -
<PAGE>

         to the performance of its duties to all system maintenance information
         appropriate to those parts of the TIS not covered by its authority.

12.8     The MA, with respect to the TIS, shall be authorized to pursue claims
         in its own name, on behalf of the Parties, in the event of any damage
         or loss to the TIS or any part thereto and may file appropriate lawsuit
         or other proceedings on behalf of the Parties. Subject to obtaining the
         prior concurrence of the MC, a MA may settle or compromise any claims
         and execute releases and settlement agreements on behalf of the Parties
         as necessary to effect a settlement or compromise. The MC shall be
         informed of all such activities, as appropriate.

12.9     None of the Party shall be liable to any other Party or take on itself
         to be responsible to any Carrier for any loss or damage sustained by
         reason of any failure in, or breakdown of, the facilities constituting
         the TIS or any interruption of service, whatsoever shall be the cause
         of such failure, breakdown, or interruption, and however long it shall
         last, but, in the event of a failure or breakdown of any such
         facilities, if the MA responsible for O&M of such facilities involved
         as specified in this Paragraph 12 fails to restore those facilities to
         efficient working order and operation within a reasonable time after
         having been called upon to do so by any other Party to whom capacity is
         assigned by this Agreement, the MC may, to the extent that it is
         practical to do so, place or cause to be placed such facilities in
         efficient working order and operation and charge the Carriers their
         proportionate shares of the costs reasonably incurred in doing so.

12.10    Each Party to this Agreement, at its own expense, shall have the right
         to inspect from time to time the Segment S operation and maintenance of
         any portion of the TIS and to obtain copies of the maintenance records.
         For this purpose, each MA responsible for maintaining any segment or
         portion of any segment of the TIS, as specified in this Paragraph 12
         shall retain significant records, including recorder charts, for a
         period of not less then five (5) years from the date of the record. If
         these records are destroyed at the end of this period, a summary of
         important items should be retained for the life of the TIS. Such right
         of inspection pursuant to this Subparagraph 12.10 shall be subject to
         reasonable conditions of confidentiality.

13       KEEPING AND INSPECTION OF BOOKS FOR SEGMENT S

13.1     For those portions of Segment S, if any, specified in the Supply
         Contract as costs incurred items, the PG shall ensure that the Supply
         Contract require the supplier(s) to keep and maintain such books,
         records, vouchers and accounts of all such costs with, respect to the
         engineering, provision and installation of those items for a period of
         five (5) years from the date of Network Acceptance of Segment S, as
         specified in the Supply Contract(s).

                                     - 16 -
<PAGE>

13.2     For those portions of Segment S specified in the Supply Contract as
         fixed cost items, the PG shall ensure that the Supply Contract require
         the supplier(s) to keep and maintain records with respect to their
         respective billing of those items for a period of five (5) years from
         the RFNA Date of Segment S, as specified in the Supply Contract.

13.3     The PG shall ensure that the Supply Contract require the supplier(s) to
         obtain from their contractors and subcontractor(s) such supporting
         records, for other than the cost of fixed cost items, as may be
         reasonably required by Subparagraph 13.1 and to keep and maintain such
         records for a period of five (5) years from the RFNA Date of Segment S,
         as specified in the Supply Contract.

13.4     The PG shall ensure that the Supply Contract shall afford the Parties
         to this Agreement the right to review the books, records, vouchers, and
         accounts required to be kept, maintained, and obtained pursuant to
         Subparagraphs 13.1, 13.2 and 13.3.

13.5     With respect to additions to Segment S, comparable records to those
         specified in Subparagraphs 13.1, 13.2 and 13.3, as appropriate, shall
         be maintained by the Party providing such additions for a period of
         five (5) years from the installation date of such equipment.

13.6     The Terminal Parties shall each keep and maintain such books, records,
         vouchers, and accounts of all costs that are incurred in the
         engineering, provision and installation of Segment S and not included
         in the Supply Contract, as defined in Paragraph 10, which they incur
         directly, for a period of five (5) years from the RFS Date or the date
         the work is completed, whichever is later.

13.7     With respect to the Segment S O&M Costs, such books, records, vouchers,
         and accounts of costs, as are relevant, shall be kept and maintained by
         the Terminal Parties for a period of five (5) years from the date on
         which the corresponding bills to the Carriers are rendered.

13.8     Any Party, including the NA, keeping and maintaining relevant books,
         records, vouchers, and accounts of costs pursuant to Subparagraphs
         13.5, 13.6 and 13.7 shall afford the other Parties the right to review
         or audit the said books, records, vouchers, and accounts of costs. In
         affording the right to review or audit, the entire costs reasonably
         incurred in complying with the review or audit. In the case of an audit
         initiated by the MC and exercised by the F&ASC, the audited Party or
         Parties shall be permitted to recover the entire costs of the review or
         audit from the Carriers in the proportions specified in the appropriate
         Schedule.

13.9     Any rights of review and audit pursuant to this Paragraph 13 shall only
         be exercisable through the F&ASC in accordance with the F&ASC's audit
         procedures.

                                     - 17 -
<PAGE>

14       ASSIGNMENT AND USE OF CAPACITY

14.1     The Capacity of the TIS can only be used by a Carrier.

14.2     The Parties shall obtain Allocated Capacity in the form of MIUs on an
         ownership basis as shown in Schedule B.

14.3     Procedures for Parties activation of their Allocated Capacity will be
         developed by the T&OSC and the NA for MC approval.

14.4     A Party is allowed to use its Allocated Capacity for the provision of
         international telecommunications services with/by itself and its
         Associate companies provided that the users of the capacity are also
         Carriers and that such Associate companies are not operating in the
         other Party's landing countries except in the Party's landing country.

14.5     For the purpose of this Agreement, transfer of Allocated Capacity
         (hereinafter referred to as "Transfer") is the making available of all
         the right of use of the capacity to an Associate company without
         transferring the Party's other obligations and rights.

14.6     Subjected to MC approval, transfer of a Party's Allocated Capacity to
         its Associate is allowed provided that the capacity transferred is in
         multiples of the MIU and that the recipient of the transferred capacity
         is a Carrier and provided that such recipient/s does/do not operate in
         the other parties landing countries except in the Party's landing
         country. The subsequent transfer by the recipient to another party is
         not allowed. The transfer back of the said allocated capacity to the
         transferor is allowed only once.

14.7     The Assigned and Unassigned Capacity which comprised of the Parties
         shall be in accordance with Schedule E. Such Unassigned Capacity shall
         comprise Reserved Capacity for intended future assignments in
         accordance with Subparagraph 14.9, and/or Defined Capacity for sale on
         an IRU basis in accordance with Subparagraph l4.11.

14.8     The Capacity in the TIS shall be jointly assigned in a Path to two (2)
         Carriers or wholly assigned in a Path to one (1) Carrier and shall be
         expressed in terms of half interest in a MIU:

         (i)      Jointly-assigned Capacity in a Path Assignment shall be
                  considered as consisting of two half-interests in a MIU, with
                  each half-interest assigned to one of the two Carriers
                  involved. Such MIUs are assigned to the indicated Party for
                  provision of international telecommunications services between
                  such Carriers.

                                     - 18 -
<PAGE>

         (ii)     Wholly-assigned Capacity in a Path Assignment shall be
                  considered as consisting of two half-interests in a MIU
                  assigned to one Party. Such MIUs can only be assigned to the
                  indicated Party for:

                  (a)      connection from TIS Cable Landing Point by a Party
                           licensed in that country/territory to an external
                           cable system, The traffic termination must be in a
                           non-TIS Cable Landing Point country/territory in
                           which the Party is also licensed to provide
                           international telecommunication services (hereinafter
                           referred to as 'Transit Out"); or

                  (b)      connection from another cable system to a TIS Cable
                           Landing Point for transit through TIS for exit to
                           another cable system via a TIS Cable Landing Point.
                           The traffic termination at both ends must be in
                           non-TIS Cable Landing Point countries/territories
                           (hereinafter referred to as "Transit Through").

14.9     Any Party having Reserved Capacity may, at times approved by the MC,
         have such capacity, or a portion thereof redesignated as Assigned
         Capacity (with an appropriate designation of a specific Path) as is
         necessary to establish jointly- assigned Capacity or wholly-assigned
         Capacity pursuant to Subparagraph 14.8. Such capacity shall be assigned
         to a Party designating its Reserved Capacity as set forth above, and
         shall not be reassigned to another Carrier. Such re-designation of
         Reserved Capacity to Assigned Capacity shall also be subjected to the
         following:

         (i)      The half-interests in the jointly-assigned MIUs required by a
                  Party in any Path of the TIS shall be deducted from the
                  Party's Reserved Capacity, wherever available.

         (ii)     The two half-interests in the wholly-assigned MIUs required by
                  a Party in any Path of the TIS shall be deducted from the
                  Party's Reserved Capacity, wherever available.

14.10    The procedures for the transfer of a Party's Reserved Capacity and
         Defined Capacity shall be as follows:

         (i)      A Party which has Reserved Capacity may, once at the end of
                  every one (1) year after the RFS Date coincide with the MC
                  meetings, convert such capacity to Defined Capacity.

         (ii)     A Party which has Defined Capacity may convert such capacity
                  to Reserved Capacity at any time as required.

                                     - 19 -
<PAGE>

         (iii)    Notwithstanding Subparagraph 14.10 (i), any Party may be
                  permitted to transfer the MIU between their Reserved Capacity
                  and Defined Capacity on other, occasions subject to the
                  approval of the MC in consideration of circumstances,
                  including but not limited to the following:

                  (a)      The introduction of new submarine cable systems
                           interconnecting to the TIS; and

                  (b)      The introduction of other international
                           telecommunications Carrier to the country of a
                           Terminal Party.

         (iv)     A Party which has Assigned Capacity may convert such capacity
                  to Reserved Capacity not more than once per year.

14.11    Any capacity acquired after the RFS Date shall be on an IRU basis at a
         price to be determined by the MC. Such acquisition of capacity on an
         IRU basis shall be in accordance with the following:

         (i)      The MIU requirements of any Carriers from the same country as
                  a Terminal Party may be deducted from the Defined Capacity of
                  the Landing Party(ies) of that country, which shall have a
                  first priority in the said deduction. Such deduction shall be
                  communicated to the Network Administrator at the time of such
                  capacity acquisition.

         (ii)     Except as provided in Subparagraph 14.11(i), any sales of
                  capacity on an IRU basis prior to the disposal of all of the
                  Parties' Defined Capacity shall be from such Defined
                  Capacity. Funds from such sales of IRU capacity shall be
                  reimbursed to the Parties concerned based on the Defined
                  Capacity percentages specified in Schedule E. Thereafter the
                  MIU of such IRU sales shall be deducted proportionately from
                  each Party's Defined Capacity and Schedule E shall be amended,
                  as appropriate, to reflect the new levels of Defined Capacity
                  and share of funds from subsequent sales of capacity on an IRU
                  basis.

         (iii)    After all of the Parties' Defined Capacity has been disposed
                  of, subsequent sales of capacity on an IRU basis shall be from
                  the Unallocated Capacity. Funds from such sales of IRU
                  capacity shall be reimbursed to the Parties in the proportions
                  specified in Schedule B.

         (iv)     Carriers requesting capacity on an IRU basis pursuant to
                  Subparagraph 14.11 shall enter into an IRU Agreement, which
                  shall be subjected to the approval of the MC.

         (v)      The Network Administrator, pursuant to the Terms of Reference
                  as set forth in Annex 2 of this Agreement, shall be authorized
                  to execute such IRU agreement(s) on behalf of the Parties to
                  this Agreement.

                                     - 20 -
<PAGE>

14.12    No Party may make available any of its half-interests in any of the
         Path assignments, on any basis whatsoever, to another carrier, except
         with the approval of the MC.

14.13    No Party may reassign any of its Path assignments, except with the
         approval of the MC.

14.14    The Unallocated Capacity of TIS shall be owned by the Parties in common
         and undivided shares in accordance with Schedule B.

14.15    After the RFS Date, the MC may authorize to redistribute part or whole
         of the Unallocated Capacity to the Parties on a pro rata basis, in
         MIUs, in accordance with Schedule B.

14.16    The MC may authorize use of the Unallocated Capacity for restoration of
         telecommunications services. The terms and conditions of such use shall
         be determined by the MC based, in part, on terms to be agreed to by the
         relevant Terminal Parties of the TIS, in recognition of the technical
         and operational impact on the Terminal Station operations.

14.17    The MC may authorize the allocation and exchange of a portion of the
         Unallocated Capacity with other cable systems on such basis as is
         deemed mutually beneficial to the Parties. The terms and conditions of
         such allocation or exchange of capacity shall be agreed by the MC.

14.18    The communications capability of any capacity assigned in Schedule E
         may be optimized by the Carriers to whom such capacity is assigned by
         the use of equipment which will more efficiently use such capacity
         provided that the use of such equipment does not cause an interruption
         of or interference, impairment or degradation to the use of any other
         capacity in the TIS or prevent the use of similar equipment by other
         Carriers. Such equipment, if used shall not constitute a part of the
         TIS.

14.19    Schedules B, C, D, E, and F shall be modified by the NA as appropriate
         to reflect any revised assignments of capacity and/or IRU sales
         pursuant to this Paragraph 14.

14.20    The Parties shall be authorized to allow occasional use of the
         Unallocated Capacity, if available, on a commercial basis (hereinafter
         referred to as "Occasional Commercial Use" for the provisioning
         temporary or occasional telecommunications services, including but not
         limited to administration leases and ad-hoc restoration services, to
         any Carrier(s) or international telecommunications entity(ies), on the
         terms and conditions to be determined by MC. The net receipts from such
         Occasional Commercial Use shall be reimbursed to the Parties which
         shall be in proportion to the ownership capacity of the Parties.

                                     - 21 -
<PAGE>
14.21    Notwithstanding Subparagraph 14.20, any Party having Unassigned
         Capacity may utilize such capacity for its own interest in the
         temporary or occasional telecommunications services in accordance with
         the procedures to be established by T&OSC and to be approved by the MC.

15       CAPACITY ROUTING

         At times to be determined by the MC, including but not limited to those
         specified in Subparagraphs 16.2, 16.3 and 16.4 of this Agreement, the
         capacity routing of all Carriers shall be reviewed and established in
         such a way, as it necessary to allocate the capacity in all Links of
         the TIS to achieve the most efficient utilization of the entire TIS.
         Such routing shall be as determined by the NA pursuant of the Terms of
         Reference as set forth in Annex 2 of this Agreement, and shall be based
         on principles of capacity routing which shall be approved by the MC.

16       INCREASE OR DECREASE OF DESIGN CAPACITY

16.1     If, subsequent to the RFS Date, the Design Capacity of the TIS or any
         of its Link(s) thereof is increased or decreased pursuant to the
         Agreement of the Parties or otherwise, and such increase or decrease of
         the Design Capacity affects neither the routing of circuits assigned in
         the TIS nor the Allocated Capacity of the TIS or any of its Link(s),
         the additional or reduced Design Capacity will be added to or
         subtracted from the Unallocated Capacity, as appropriate, with no
         change to the Schedules of this Agreement.

16.2     In the event that the capacity which the TIS or any of its Link(s)
         thereof is capable of providing is reduced below the capacity assigned
         and/or required for use in such Links as a result of physical
         deterioration or for other reasons beyond the control of the Parties,
         the NA may reroute such circuits as are effected by the reduction of
         capacity in such a way as to ensure efficient utilization of the TIS.
         Should the other Links of the TIS be capable of supporting the
         rerouting of such assigned circuits, the additional or reduced Design
         Capacity will be added to or subtracted from the Unallocated Capacity
         as appropriate with no change to the Schedules of this Agreement.

16.3     In the event that the capacity which the TIS or any of its Link(s)
         thereof is capable of providing is lower than the capacity needed to
         support the routing of circuits assigned in the TIS, the path
         assignments of the Carriers in Schedule G may be reduced or changed as
         necessary and agreed by the Carriers affected and financial adjustments
         shall be made among the Carriers, as necessary on the terms and
         conditions to be agreed by the MC. Schedules B, C, D, E and F shall be
         modified,

                                     - 22 -
<PAGE>

         as appropriate, to reflect the revised Path Assignments associated with
         such increase or decrease of the Design Capacity.

16.4     The NA shall thereafter administer subsequent IRU sales in the TIS and
         routing of circuits assigned in the TIS in respect of such increase or
         decrease of Design Capacity.

17       EXPANSION OF EQUIPPED CAPACITY

17.1     Any upgrade of Equipped Capacity of TIS, including any costs, financial
         adjustments and allocation of capacity associated with such upgrade,
         shall be approved by a vote of members of the MC representing at least
         seventy five percent (75%) of the total voting interests as specified
         in Schedule B.

17.2     All Parties shall have the right to a pro-rata store of the upgrade
         capacity in accordance with revised Schedule C2. No Party shall be
         forced to participate in such an upgrade.

17.3     In the event of the first expansion of Equipped Capacity, the initial
         Unallocated Capacity shall be distributed on a pro-rata basis, in MIUs,
         in accordance with the percentages in Schedule C2 before such upgrade.

17.4     Schedules C2 and D shall be appropriately modified to reflect the
         revisions associated with such expansion of Equipped Capacity. Schedule
         B shall remain unchanged.

18       USE OF TERMINAL STATION

18.1     Each Carrier to whom capacity in the TIS is assigned pursuant to this
         Agreement shall acquire an IRU, for the duration of this Agreement, in
         Segment T1, T2 and T3 in which it has no ownership interests, to the
         extent required for the use of its assigned capacity (hereinafter
         referred to as "Terminal Station IRU"). Such Terminal Station IRU shall
         commence on the RFS Date of the TIS or from the date a Carrier first
         places any of its capacity into operation, whichever occurs first, and
         such Terminal Station IRU shall continue for the duration of this
         Agreement. Each Terminal Party shall bear its own Segment T capital
         costs in the construction of the TIS.

                                     - 23 -
<PAGE>

18.2     In the event that an Agreement for another cable system utilizing any
         Terminal Station of the TIS is terminated prior to the termination of
         this Agreement, the owner of the Terminal Station in question with the
         agreement of the Parties hereto, shall take all necessary measures to
         ensure that the Terminal Station in question will be available for the
         TIS for the duration of this Agreement on fair and equitable terms. If
         the Terminal Station in question is not available for the landing and
         terminating of the TIS for any reason, the relevant owner, with the
         agreement of the Parties hereto, shall take all necessary measures to
         ensure that another appropriate Terminal Station in the country of that
         owner will be available for the TIS for the duration of this Agreement
         on terms and conditions similar to those contained in this Agreement.

18.3     For the Terminal Station IRU granted in each of the Terminal Stations
         involved, the Carriers hereto shall pay the O&M costs of the relevant
         Terminal Station, including additions thereto, allocable to the TIS as
         set forth in Schedule D2.

18.4     Where the use of a Terminal Station or of certain equipment situated
         therein, such as power supply or testing and maintenance equipment, is
         shared by Agreement of the Parties, by the TIS and other communications
         systems terminating at that Terminal Station and the O&M costs of such
         shared Terminal Station or equipment (not solely attributable to a
         particular communications system or systems) shall be allocated among
         the systems involved in the proportion in which they use the shared
         equipment or facilities. For such purpose, use of a shared Terminal
         Station or of shared Terminal Station equipment or facilities therein
         attributable to a particular system shall be determined on the basis of
         the ratio of (i) the installed cost of the Terminal Station equipment
         or facilities (excluding shared equipment or facilities) associated
         with the particular Terminal System to (ii) the installed cost of the
         Terminal Station equipment of facilities (excluding shared equipment or
         facilities) associated with all systems, including the TIS, which make
         use of the shared equipment or facilities.

18.5     Capital costs, as used in this Paragraph 18 with reference to the
         provision and construction of each of the Terminal Stations (including
         land, access roads, cable rights-of-way, ducts and building at such
         station), or-causing them to be provided and constructed, or to
         installing or causing to be installed Terminal Station equipment, shall
         include all expenditures incurred which shall be fair and reasonable in
         amount and either to have been directly and reasonably incurred for the
         purpose of, or to be properly chargeable in respect of, such provision,
         construction, and installation, including, but not limited to, the
         purchase costs of land, building costs, amounts incurred for
         development, engineering, design, materials, manufacturing, procurement
         and inspection, installation, removing (with appropriate reduction for
         salvage), testing associated with installation, customs duties, taxes
         (except income tax imposed upon the net income of a Party), financial
         charges attributable to other Carriers' share of costs, supervision,
         overheads and insurance or a reasonable allowance in lieu thereof was
         not provided.

                                     - 24 -
<PAGE>

18.6     O&M costs, as used in this Paragraph 18 with reference to each of the
         Terminal Stations, shall include costs reasonably incurred in O&M the
         facilities involved, including, but not limited to, the cost of
         attendance, testing, adjustments, repairs and replacements, customs
         duties, taxes (except income tax imposed upon the net income of a
         Party) paid in respect of such facilities, billing activities,
         administrative costs, financial charges attributable made by or against
         other persons in respect of such facilities or any part thereof and
         damages or compensation payable by the Terminal Station owner on
         account of such claims. Costs, expenses, damages, or compensation
         payable to or by the Carriers acquiring a Terminal Station IRU in the
         respective; Terminal Station in the same proportions as they share the
         costs of the aforementioned Terminal Station.

18.7     Payments due under this Paragraph 18 shall be made in accordance with
         the following principles and such other billing and payment procedures
         as may be determined by the MC form time to time:

         (i)      Upon or after the RFS, Carriers acquiring Terminal Station IRU
                  for the use of its assigned capacity at the relevant Terminal
                  Station shall bear the portion of the O&M costs of the
                  Terminal Station specified in Schedule D.

         (ii)     The Carriers hereto shall be billed individually for, and
                  shall pay their proportionate shares of, the portion of any
                  O&M costs of a Terminal Station allocable to this Agreement
                  incurred after the grant to the Carriers hereto of the
                  Terminal Station IRU in such Terminal Station becomes
                  effective and of the portion of the operation and maintenance
                  costs of the Terminal Station allocable to this Agreement
                  commenting at the time such grant becomes effective, in
                  accordance with the following billing method:-

                  (a)      Unless the MC authorizes changes to the procedure for
                           the rendering of bills associated with the Terminal
                           Station O&M Costs, the Party shall promptly render
                           bills, in accordance with this Subparagraph 18.7(iii)
                           (a) and the billing and payment procedures
                           established by the F&ASC and approved by the MC, to
                           each of the Parties for such Party's pro rata shares
                           of these costs in accordance with Schedule D. Such
                           bills shall be rendered by the Terminal Parties not
                           more frequently than quarterly and shall contain a
                           reasonable amount of detail to substantiate them. On
                           the basis of such bills, each Party shall pay the
                           Terminal Parties, such amounts as may be owed by the
                           end of the calendar month following the calendar
                           month in which the bill was rendered.

                                     - 25 -
<PAGE>

                  (b)      In the case of bills containing costs billed on a
                           preliminary billing basis, appropriate adjustments
                           will be made in subsequent bills promptly after the
                           actual costs involved are determined. As soon as
                           practicable, the Terminal Parties shall make such
                           adjustments and render such bills or arrange for such
                           credits as appropriate due to changes in the cost
                           actually incurred.

                  (c)      The applicable financial charges and extended payment
                           charges shall be in accordance with Subparagraph
                           10.5, 10.6, 10.7 and 10.8.

13.8     With respect to the operation and maintenance costs of Segments T1, T2
         and T3 such books, records, vouchers and accounts of costs, as are
         relevant, shall be kept and maintained by CAT, SINGTEL and TELKOM for a
         period of five (5) years from the date on which the corresponding bills
         to the Carriers are rendered. CAT, SINGTEL and TELKOM shall afford the
         Parties the right to review said books, records, vouchers, and accounts
         of costs for a period of five (5) years. Such right shall only be
         exercisable by the F&ASC in accordance with the F&ASC's audit
         procedure.

18.9     Notwithstanding Subparagraph 18.1 of this Agreement, a Party thereby
         granted a Terminal Station IRU interests in Segment T1, T2 and T3 may,
         prior to the commencement of that Terminal Station IRU interest; elect
         to renounce its Terminal Station IRU interest entitlement and to
         instead have use of Segments T1, T2 and T3 for the duration of this
         Agreement on such terms and conditions as are agreed between that
         Parties and the owners of said Segments respectively, and in such event
         the provisions of Subparagraphs 18.1 -18.9 of this Agreements shall
         apply in relation to such use except insofar as they may be modified by
         such Agreements. The Subparagraphs 18.9 shall not operate to confer on
         a Party any benefit, financial or otherwise, to which that Party would
         not otherwise be entitled under this Agreement.

19       OBLIGATION TO PROVIDE TRANSITING FACILITIES TO EXTEND THE TIS CAPACITY

19.1     The Terminal Parties shall use all reasonable efforts to provide and
         maintain or cause to be provided and maintained in working order for
         the duration of this Agreement, the necessary transit facilities within
         their respective Countries as may be reasonably required for extending
         capacity in the TIS so as to provide connections to the other
         international cables transmission facilities.

                                     - 26 -
<PAGE>

19.2     During the term of the Agreement, each of the Parties hereto in
         other than the Terminal Parties countries shall use all reasonable
         efforts to furnish and maintain, or cause to be furnished and
         maintained, in efficient working order, such transmission facilities in
         its country as such other Parties may reasonably require to the
         terminals of other international communications systems in such country
         for the purpose of handling communications transiting such country.

19.3     The facilities provided pursuant to Subparagraphs 19.1 and 19.2 shall
         be suitable for extending capacity in the TIS and shall be furnished
         and maintained on terms and conditions which shall be no less favorable
         than those granted to other Carriers for transmission facilities of
         similar type and quantity transiting the location involved. Such terms
         and conditions shall not be inconsistent with applicable government
         regulations in the location in which the facilities are located.

19.4     The obligations to provide facilities under this Paragraph 19 shall not
         necessarily require the provision of intrinsically digital facilities,
         nor the provision of facilities which are Bit Sequence Independent at
         rates other than STM-1, STM-4, STM-16 and STM-64.

20       OBLIGATION TO CONNECT THE TIS WITH INLAND SYSTEMS

20.1     Each of the Party hereto, at its own expense, on or after the RFS Date,
         shall do or cause to be done, all such acts and things as may be
         necessary within its opening country to provide and maintain throughout
         the period of this Agreement suitable connection of capacity in the TIS
         with appropriate inland communications facilities in its operating
         country.

20.2     The use of such inland connections for capacity pursuant to
         Subparagraph 14.8 shall be on a near-end basis and provided at the own
         expenses of the respective near-end Party.

21       SHARING OF CONTRACTUAL OBLIGATIONS AND LIABILITY

21.1     Each Party shall indemnify and shall keep indemnified and hold harmless
         the other Parties and each of their employees, servants, and agents to
         the extent hereinafter agreed from and against all claims, demands,
         actions, suits, proceedings, writs, judgments, orders and decrees
         brought, made or rendered, against them or any of them and all damages,
         losses and expenses suffered or incurred by them or any of them
         howsoever arising out of or related to any respect of providing,
         constructing and maintaining the TIS. This indemnity shall not,
         however, relieve the PG of their obligations undertaken pursuant to
         Paragraphs 7.

                                     - 27 -
<PAGE>

21.2     If a Party assumes obligations, commits monies in the name or on behalf
         of the other Parties pursuant to this Agreement or to an assignment
         under the provisions of this Agreement or is obliged by final judgment
         of a competent tribunal or under the settlement by the MC to discharge
         any claim in damages or other liability, including costs or expenses
         associate therewith to any person or entity which is not a Parties to
         this Agreement and resulting from any aspect of providing,
         constructing, laying or installing the TIS or of its O&M, that Party
         shall be entitled to reimbursement from the other Parties in the
         proportions set forth in Schedule C.

21.3     If a claim, demand, action, suit, proceeding, writ, judgment, offer or
         decree as referred to in Subparagraph 21.1 is brought, made or rendered
         against a Party or any Party suffers or incurs any damages, losses or
         expenses in respect thereof; that Party shall, as a condition of
         reimbursement under Subparagraph 21.2, immediately notify all other
         Parties and give them the opportunity to advise and recommend through
         the MC on the means to defend or to settle and, to the extent permitted
         by the relevant jurisdiction, to be joined in any proceedings relating
         thereto.

21.4     Except as provided for in Subparagraph 12.11, as a precondition to the
         initiation of any legal proceedings by any Party or Parties on behalf
         of and for the benefit of any other Party or Parties, the Party or
         Parties planning to initiate such proceedings shall give notice,
         appropriate under the circumstances to all other Parties.

21.5     The costs and benefits of any proceedings referred to in Subparagraph
         21.4 shall be shared between the Carriers in the manner described in
         Subparagraph 21.2.

21.6     If any Party is obliged by a final judgment of a competent tribunal or
         under a settlement approved by the MC, to discharge any claim by a
         third party, including all costs and expenses associated therewith,
         resulting from the implementation of this Agreement, the Party which
         has discharged the claim shall be entitled to receive from the other
         Parties reimbursement in the proportions as set out in Schedule B.

21.7     If any claim is brought against a Party in connection with the TIS,
         the Party shall, as a condition of reimbursement under Subparagraph
         21.1, give written notice thereof to the MC as soon as practicable and
         shall not admit, liability nor settle, adjust or compromise the claim
         without the approval of the MC.

21.8     Upon termination of this Agreement pursuant to Paragraph 28, the
         Parties shall not be relieved from any liabilities, costs, damages or
         obligations which may arise in connection with claims made by third
         parties with respect to the TIS, or any part thereof, or which may
         arise in relation to the TIS due to any law, order or regulation made
         by any government or international convention, treaty or

                                     - 28 -
<PAGE>

         agreement. Any such liabilities, costs, damages or obligations shall be
         divided among the Parties in the proportions as set out in Schedule B.

22       OBTAINING OF APPROVAL

22.1     The performance of this Agreement by the Parties is contingent upon the
         obtaining and continuance of such governmental approval, consent,
         authorization, licenses, and permits as may be required or be deemed
         necessary by the Parties and as may be satisfactory to them, and the
         Parties shall use all reasonable efforts to obtain and to have
         continues in effect such approval, consent, authorization, licenses,
         and permits.

22.2     CAT shall handle matters in Thailand, SINGTEL shall handle matters in
         Singapore and TELKOM shall handle matters in Indonesia relating to the
         obtaining and continuance of governmental approval, consent,
         authorization, licenses, and permits for the landing, construction and
         operation of the TIS in their respective countries.

23       ASSIGNMENT OF RIGHTS AND OBLIGATIONS

         Except as otherwise provided for in Paragraphs 14, 15, 16 and 24,
         during the continuance of this Agreement, no Party shall, without the
         consent of the other Parties sell, assign, transfer, or dispose of its
         rights and obligations under this Agreement or of any interest in the
         TIS except to a legal successor of, such Party, in which case written
         notice shall be given in a timely manner by the Party making such sale,
         assignment, transfer, or disposition and in the case if any assignment
         of capacity in the TIS pursuant to this Paragraph 23, the consent of
         the other Party or Parties to whom the capacity is jointly assigned is
         obtained.

24       DEFAULT

24.1     If any Party fails to make any payment required by this Agreement on
         the date when it is due and such default continues for a period of at
         least one (1) month after the payment due date, the NA or Terminal
         Parties shall notify the billed Party and the MC in writing the status
         of the matter and its intent to reclaim the Party's capacity as
         provided for in this Paragraph 24, if full payment is not received
         within one (1) month after such notification to the billed Party. If
         full payment is not received within such specified period, the Party's
         capacity will be immediately reclaimed unless otherwise determined by
         the MC, Unless otherwise decided by MC, the default in payment by any
         Party shall not in any way increase

                                     - 29 -
<PAGE>

         the liability of the other Parties in respect of their obligations for
         payments under the Supply Contract required by this Agreement.

24.2     The MC shall consider any extenuating circumstances not within the
         specific control of the billed Party in determining whether or not to
         defer the reclamation of the capacity assigned to such billed Party
         pursuant to Subparagraph 24.1 above or, under what conditions, if any,
         the defaulting Party may be re-admitted as a Party to this Agreement
         after such reclamation. In the event of reclamation, the defaulting
         Party shall not be entitled to any payment or credit for the reclaimed
         capacity, nor is the defaulting Party entitled to any reimbursement of
         any amounts it had paid under this Agreement. All rights of a
         defaulting Party under this Agreement shall terminate as of the time
         all its capacity in the TIS is reclaimed: and concurrent with such
         reclamation of capacity, the defaulting Party will no longer be deemed
         to be a Party to this Agreement. Such reclamation shall not relieve the
         defaulting Party from its obligations under this Agreement, including
         but not limited to the payment of its unpaid accounts, which have been
         incurred prior to the actual reclamation. The MC shall determine
         arrangements for disposition of any reclaimed capacity. In such
         circumstances, the Schedules shall be revised to reflect the default of
         a Party and the reallocation of interests pursuant to the arrangements
         determined by the MC.

24.3     Notwithstanding Subparagraph 24.2, reclamation of a Terminal Party's
         capacity will not release the Terminal Party from providing, operating
         and maintaining its respective Terminal Station until a reasonable
         agreement is negotiated in order to ensure the continuous operation of
         the said Terminal Party's Terminal Station after reclamation of its
         capacity.

24.4     If a Party files a petition in bankruptcy, or if a trustee in
         bankruptcy, receiver, conservator or similar officer is appointed to
         take charge of all or party of a Party's property, the Party shall send
         all notices related to such proceedings to the Terminal Parties and NA
         until notified otherwise.

25       SETTLEMENT OF DISPUTES AND INTERPRETATION OF AGREEMENT

25.1     If a dispute should arise under this Agreement between or among the
         Parties, they shall make every reasonable effort such dispute. However,
         in the event that they are unable to resolve such dispute, the matter
         shall be referred to the MC which shall either resolve the matter or
         determine the method by which the matter should be resolved (including
         arbitration if appropriate). This procedure shall be the sole and
         exclusive remedy for any dispute that may arise under this Agreement
         between or among the Parties. The performance of this Agreement by the
         Parties shall continue during the resolution of any dispute.

                                     - 30 -
<PAGE>

25.2     If any difference shall arise between or among the Parties or any of
         them in respect of the interpretation or effect of this Agreement or
         any part or provision thereof or their rights and obligations
         thereunder, and by reasons thereof there shall arise the need to decide
         the question by what municipal or national law this Agreement or such
         part or provision thereof is governed, the following facts shall be
         excluded from consideration, namely that this Agreement was made in a
         particular country and that it may appear by reason of its form, style,
         language or otherwise to have been drawn preponderantly with reference
         to a particular system of municipal or national law; the intention of
         the Parties being that such facts shall be regarded by the Parties and
         in all courts and tribunals wherever situated as irrelevant to the
         question aforesaid and to the decision thereof.

25.3     In the event the dispute is not resolved by MC within agreed timeframe.
         The Parties may refer the dispute to arbitration, in accordance with
         the United Nations Commission on International Trade Law (UNCITRAL)
         Arbitration Rules as at present in effect with the following
         conditions:

         (i)      The place of arbitration shall be agreed by the Parties in
                  disputed, however, if they are unable to agree the place of
                  arbitration shall be Hong Kong; and

         (ii)     The language to be used in the arbitration proceedings shall
                  be English.

         (iii)    The tribunal shall consist of three arbitrators, who shall be
                  selected by agreement of the Parties in dispute.

         (iv)     The award rendered by arbitration shall be final and binding
                  upon the Parties in dispute.

         (v)      All costs related to arbitration under this Paragraph 25 shall
                  be borne by the Parties in dispute unless otherwise determined
                  by the MC.

26       RELATIONSHIP OF PARTIES

         The relationship between or among the Parties shall not be that of
         partners and nothing herein contained shall be deemed to constitute a
         partnership between or among them, and the common enterprises among the
         Parties shall be limited to the express provisions of this Agreement.

                                     - 31 -
<PAGE>

27       PRIVILEGES FOR DOCUMENTS OR COMMUNICATIONS

         Each Party specifically reserves, and is granted by each of the other
         Parties, in any action, arbitration or other proceeding between or
         among the Parties or any of them in a country other than that Party's
         own country, the right of privileges, in accordance with the laws of
         that Party's own country, with respect to any documents or
         communications which are material and pertinent to the subject matter
         of the action, arbitration or other proceeding in which privilege could
         be claimed or asserted by that Party in accordance with those laws, and
         such privilege, whatever may be its nature and whenever it may be
         claimed or asserted, shall be allowed to that Party as it would be
         allowed if the action, arbitration or other proceeding has been brought
         in a court of, or before an arbitrator in, the Party's own country.

28       DURATION OF AGREEMENT AND REALIZATION OF ASSETS

28.1     This Agreement shall become effective on the date and year first above
         written and shall continue in operation for at least an initial period
         of fifteen (15) years following the RFS Date (hereinafter referred to
         as "Initial Period") and shall be terminable by agreement of the
         Parties. However, any Party may terminate its participation in this
         Agreement at the end of the Initial Period or any time thereafter by
         giving not less than one (1) year prior notice thereof, in writing, to
         the other Parties.

28.2     This Agreement may be terminated at any time during the Initial Period
         by agreement in writing of all Parties. If unanimous agreement cannot
         be reached between all the Parties for the retirement of the TIS during
         its specified" useful life, this subject matter shall be referred to
         the MC for such resolution in accordance with Subparagraph 3.4 but in
         this case requiring a seventy five per cent (75%) majority of the total
         voting interests as specified in Schedule B.

28.3     If a Terminal Party terminates its participation in this Agreement
         pursuant to Subparagraph 28.1 of this Agreement, after the Initial
         Period, the remaining Parties and said Terminal Party will negotiate a
         reasonable agreement in order to ensure the continuous operation of
         said Terminal Party's Terminal Station after the Initial Period.

28.4     Upon the effective date of termination of participation of a Party,
         Schedules A, B, C, D, E and F of this Agreement shall be appropriately
         modified. The remaining Carriers shall assume the capital, O&M
         interests of the Party terminating its participating in proportion to
         their allocation of costs as specified in Schedule C and D immediately
         preceding such effective date of termination, except for the continuing
         rights and obligations of the terminating Party as specified in

                                     - 32 -
<PAGE>

         Subparagraphs 28.6 and 28.7. No credit for capital cost will be made to
         a Party that terminates its participation in accordance with
         Subparagraph 28.1.

28.5     The interests of a Party or Parties in the Segment S of the TIS which
         come to an end by reason of the termination of its or their
         participation in this Agreement or the termination of this Agreement
         shall be deemed to continue for as long as is necessary for effecting
         the purposes of Subparagraphs 28.6 and 28.7 and in the case of
         interests which come to an end by reason of a Party or Parties
         terminating its or their participation in this Agreement, the Segment S
         shall accordingly thereafter be held with respect to such interests at
         the first time any Party terminates its participation in this
         Agreement, upon the appropriate trusts by the Parties who are the
         owners thereof. Should the doctrine of trusts not be recognized under
         the laws of the country where the property to which such interests
         relate is located, then the Party or Parties who are the owners thereof
         shall nevertheless be expressly bound to comply with the provisions of
         Subparagraphs 28.6 and 28.7.

28.6     Upon termination of this Agreement, the Parties shall use their efforts
         to liquidate the Segment S of the TIS within a reasonable time by sale
         or other disposition between the Parties or any of them or by sale to
         other entities or persons, but no sale or disposition shall be effected
         except by agreement between or among the Parties who have interests in
         the subject thereof at the time this Agreement is terminated. In the
         event agreement cannot be reached, the decision will be carried on the
         basis of a simple majority of the total voting interests as specified
         in Schedule B. The costs or net proceeds of interests of every sale or
         other disposition shall be divided between or among the Parties who
         have or were deemed to have interests in the subject thereof at the
         time this Agreement is terminated, in the proportions in which such
         Party's allocation of costs is specified in Schedule C immediately
         preceding the first time any Party terminates its participation in this
         Agreement or this Agreement is terminated pursuant to Subparagraph
         28.1, whichever occurs first. The Parties shall execute such documents
         and take such action as may be necessary to effect any sale or other
         disposition made pursuant to this Paragraph 28.

28.7     Unless the MC shall otherwise determine, a Party's termination of its
         participation in this Agreement or the termination of this Agreement
         pursuant to Subparagraph 28.1 shall not relieve the Party or Parties
         from any liabilities, costs, damages or obligations which may arise in
         connection with claims made by third Parties with respect to the TIS,
         the facilities that comprise the TIS or any part or portion thereof, or
         which may arise in relation to the TIS due to any law, order or
         regulation made by any government or supranational legal authority
         pursuant to any international convention, treaty or agreement. Any such
         liabilities, costs, damages, or obligations shall be divided among the
         Parties in the proportions in which such Parties allocation of costs is
         specified in Schedule C immediately preceding the first time any Party
         terminates its participation in this Agreement or

                                     - 33 -

<PAGE>

         this Agreement is terminated pursuant to Subparagraph 28.1, whichever
         occurs first.

29       BILLS PAYMENTS AND NOTICES

29.1     Unless otherwise designated by the Party concerned, NA and Terminal
         Parties shall render bills under this Agreement addressed to the
         respective Parties or Carriers by airmail, dispatch of which shall be
         advised by facsimile or e-mail giving a summary of the payments due and
         expenses concerned.

29.2     Payments under this Agreement shall be made by wire transfer to the
         designated bank account indicated in the bills rendered.

29.3     All amounts billed or payable under this Agreement shall be paid in
         full, free and clear of any taxes, duties or other withholdings.
         Charges incurred for the wire transfer pursuant to Subparagraph 29.2
         shall be borne by the remitting Party or Carriers.

29.4     Notices issued under this Agreement shall be addressed to the
         respective Parties or Carriers by airmail, express courier, facsimile
         or e-mail, as appropriate.

30       WAIVER

         The waiver by any Party of a breach of, or a default under, any of
         provisions of this Agreement, or the failure of any Party, on one or
         more occasions, to enforce any of the provisions of this Agreement or
         to exercise any right or privilege hereunder shall not thereafter be
         construed as a waiver of any subsequent breach or default of a similar
         nature, or as a waiver of any such provision, right, or privilege
         hereunder.

31       PARAGRAPH HEADINGS

         The paragraph headings do not form part of this Agreement and shall not
         have any effect on the interpretation thereof.

                                     - 34 -

<PAGE>

32       EXECUTION OF AGREEMENT

         This Agreement shall be executed in one (1) original in the English
         language. Identical counterparts may be executed and when so executed
         shall be considered as an original. Such counterparts shall together,
         as - well as separately, constitute one and the same instrument. TELKOM
         shall be the custodian of the original and shall provide certified
         photocopies to Parties to this Agreement.

33.      ALTERATIONS AND ADDITIONS

33.1     Subject to Subparagraph 33.3, this Agreement and any of the provisions
         hereof may be altered or added to only by another agreement in writing
         signed by a duly authorized person on behalf of each and every Party to
         this Agreement. Only one (1) original of such supplemental agreement
         shall be executed.

33.2     TELKOM shall be responsible for the prompt distribution of certified
         photocopies of any amendments or supplemental agreements hereto to all
         other Parties and shall retain such signed original amendments or
         supplemental agreements. Such Party shall accord access to such
         documents to a requesting Party upon reasonable notice. A notarized
         copy of any amendment or supplemental agreement shall be provided to a
         Party upon request and at the requesting Party's expense.

33.3     Subparagraph 33.1 shall not apply to any Schedule modified in
         accordance with  any other provision of this Agreement and any Schedule
         so modified shall be deemed to be a part of this Agreement in
         substitution for the immediately preceding version of that Schedule.

33.4     In the case of a Party changing the categorization of its capacity, the
         modified Schedules shall be certified by the NA on behalf of the
         Parties. The NA shall require in such instances written instructions by
         Parties wishing to reassign capacity and shall obtain the MC's
         approval, which can be by correspondence. The NA shall be responsible
         for issuing such modified Schedules.

34       SUCCESSORS BOUND

         This Agreement shall be binding on the Parties, their successors, and
         permitted assigns.

                                     - 35 -

<PAGE>

35       FORCE MAJEURE

         If any Party cannot fulfill its obligations in this Agreement due to an
         event beyond its reasonable control, including but not limited to
         lightning, flood, exceptionally severe weather, fire or explosion,
         civil disorder, war or military operations, national or local
         emergency, anything done by government or other competent authority, it
         shall not be liable to the other Parties for such delay in performance
         or failure to perform and shall, give notice to the other Parties as
         soon as reasonably practical after the event has occurred.

36       SEVERABILITY

         If any of the provisions of this Agreement shall be invalid or
         unenforceable, such invalidity or unenforceability shall not invalidate
         or render unenforceable the entire Agreement, but rather the entire
         Agreement shall be construed as. If not containing the particular
         invalid or unenforceable provision, or provisions, and the rights and
         obligations of the Parties shall be construed and enforced accordingly.

37       ENTIRE AGREEMENT

37.1     This Agreement supersedes all prior or written understandings between
         or among the Parties and constitutes the entire agreement among the
         Parties with respect to the subject matter of this Agreement.

37.2     This Agreement supersedes the MOU. Any liabilities which any Party has
         incurred arising out of or by virtue of the MOU shall be dealt with in
         accordance with the provisions of this Agreement.

38       CONFIDENTIALITY

38.1     All data and information that is acquired or received by any Party in
         connection with TIS in anticipation of or under this Agreement shall be
         held confidential and shall not be divulged in any way to any third
         party, without the prior approval of the Management Committee.

38.2     Notwithstanding Subparagraph 38.1, any Party may, without such
         approval, disclose such data and information to:

                                     - 36 -

<PAGE>

         (i)      the extent required by any applicable laws, or the
                  requirements of any recognized stock exchange in compliance
                  with its rules and regulations, or in the case of a Party
                  wholly owned by a sovereign government, by the rules of
                  governance of the Party; or

         (ii)     any government agency lawfully requesting such information; or

         (iii)    any Court of competent jurisdiction acting in pursuance of its
                  powers.

38.3     Any Party may disclose such data and information to such persons as may
         be necessary in connection with the conduct of the operations of TIS
         upon obtaining similar undertaking of confidentiality from such persons
         to whom such information may be disclosed.

38.4     Each Party shall remain bound by the provisions of this Paragraph 38
         during the period of this Agreement and for the period of five years
         following termination of this Agreement.

39       ADMISSION OF ADDITIONAL PARTIES

39.1     The MC shall be empowered on one or more occasions prior to the RFS
         Date to consider the admission of Carrier not signatories hereto as
         additional parties (hereinafter called "Additional Parties") provided
         the following conditions are met:

         (i)      the Carrier incorporated as a recognized international
                  telecommunications operator only after this Agreement was
                  executed by the Parties, in which case the said Carrier shall
                  be required to furnish satisfactory documentation of such
                  incorporation to the MC which shall decide on the issue; or

         (ii)     the Carrier incorporated as a recognized international
                  telecommunications operator before this Agreement was executed
                  by the Parties but at a timeframe which was deemed by the MC
                  as insufficient for the Carrier to be admitted as a Party to
                  this Agreement; and

         (iii)    the Carrier in question agrees to acquire an investment share
                  in the TIS at least correspond to a level of MIU to be
                  determined by the MC.

39.2     The admission of Additional Parties pursuant to subparagraph 39.1 shall
         be at the sole discretion of the MC, and nothing in this Paragraph 39
         shall be construed as assuring the admission of Carrier not signatory
         hereto as an Additional Party.

                                     - 37 -

<PAGE>

39.3     In being so admitted, an Additional Party shall acquire the same rights
         and obligations as the other Parties subject to the followings:

         (i)      the admission of Additional Parties shall be on terms and
                  conditions to be determined by the MC;

         (ii)     the Additional Party accepts responsibilities to pay its
                  proportionate share of any cost incurred under this Agreement
                  prior to its becoming a Party; and

         (iii)    the Additional Party accepts and abides by the terms and
                  conditions of this Agreement and all decisions properly taken
                  under this Agreement prior to its becoming a Party.

39.4     Parties acquiring jointly-assigned MIUs with Additional Parties
         admitted pursant to this Paragraph 39 shall be permitted to acquire
         such capacity on an ownership basis at the time such Additional Parties
         are admitted to this Agreement.

39.5     Additional Parties shall be admitted by supplemental agreements to this
         Agreement. The Terminal Parties are hereby authorized to act as
         representative and agents of all Parties to execute such supplemental
         agreements for the Additional Parties. Such supplemental agreements
         shall be approved by the MC prior to execution. Schedules A, B, C, D, E
         and F shall be appropriately modified.

40       COMPLIANCE WITH LAW

         The Parties shall comply with all applicable laws of all countries,
         territories and places having jurisdiction over the activities
         performed under or contemplated by this Agreement.

41       INTEGRATION WITH OTHER CABLE NETWORK

         The Parties hereto may consider to integrate the TIS with other cable
         network. The integration arrangement shall be subject to MC decision.

                                     - 38 -

<PAGE>

TESTIMONIUM

IN WITNESS WHEREOF, the Parties hereto have severally subscribed these presents
or caused them to be subscribed in their names and on their behalf by their
respective officers thereunto duly authorized.

For and on behalf of
The Communications Authority of Thailand

/s/ Kittin Udomkiat
--------------------------
Mr. Kittin Udomkiat
(Senior Executive Vice President (Telecommunications System))

For and on behalf of
PT Telekomunikasi Indonesia Tbk

/s/ Kristiono
--------------------------
Mr. Kristiono
(President Director/ CEO)

For and on behalf of
Singapore Telecommunications Limited

/s/ Ng Seng Sum
--------------------------
Mr. Ng Seng Sum
(Vice President, International Network)

                                     - 39 -<PAGE>
                                                                    Exhibit 4.34

                       AMENDED AND RESTATED KSO AGREEMENT

                                     BETWEEN

                         PERUSAHAAN PERSEROAN (PERSERO)

                        PT TELEKOMUNIKASI INDONESIA, Tbk.

                                       AND

                    PT MITRA GLOBAL TELEKOMUNIKASI INDONESIA

                             DATED JANUARY 20, 2004
<PAGE>

                                Table of Contents

<TABLE>
<CAPTION>
<S>      <C>                                                                                   <C>
1.       INTERPRETATION ..................................................................      3

         1.1  Definitions ................................................................      3

         1.2  Attachments ................................................................     10

         1.3  Headings ...................................................................     11

         1.4  Extended Meanings ..........................................................     11

2.       KSO in DIVRE IV .................................................................     12

         2.1  Cooperation ................................................................     12

         2.2  DIVRE IV operations ........................................................     12

         2.3  Status of DIVRE IV .........................................................     12

         2:4  Protection of TELKOM's Interest ............................................     13

         2.5  Protection of the Investor's Interest ......................................     13

3.       CONSTRUCTION ....................................................................     14

         3.1  Ownership of New Installation ..............................................     14

         3.2  Completion of any New Installation and Other Capital Expenditure ...........     14

         3.3  TELKOM Construction Right ..................................................     14

4.       PERFORMANCE OBJECTIVES ..........................................................     15

5.       MANAGEMENT AND OPERATIONS PLAN ..................................................     15
</TABLE>

                                       -i-

<PAGE>

<TABLE>
<S>      <C>                                                                                   <C>
         5.1  Approval of Plan ...........................................................     15

         5.2  Changes to Plan ............................................................     16

         5.3  Content of Plan ............................................................     16

6.       OPERATION AND MANAGEMENT OF DIVRE IV ............................................     17

         6.1  Role of TELKOM .............................................................     17

         6.2  Head of Regional Division ..................................................     17

         6.3  Appointment of Head of Regional Division and Senior KSO Management .........     18

         6.4  Telkom Representative ......................................................     18

         6.5  Auditor ....................................................................     18

         6.6  Insurance ..................................................................     19

         6.7  Indonesian Resources .......................................................     19

7.       REPORTS AND AUDITS ..............................................................     20

         7.1  Fiscal Year ................................................................     20

         7.2  Monthly Reports ............................................................     20

         7.3  Annual Audit and Report ....................................................     20

8.       FINANCE .........................................................................     21

         8.1  Source of Funds ............................................................     21

         8.2  KSO Account ................................................................     21

         8.3  Revenues ...................................................................     22
</TABLE>

                                      -ii-

<PAGE>

<TABLE>
<S>      <C>                                                                                   <C>
         8.4  Use and Segregation of Funds ...............................................     22

         8.5  Investor Revenues ..........................................................     22

         8.6  KSO Operating Expenses .....................................................     24

         8.7  Balance of KSO Revenues ....................................................     25

         8.8  TELKOM Deficiency Undertaking ..............................................     26

         8.9  Effect of Termination ......................................................     26

         8.10 Late Payment ...............................................................     26

         8.11 Transition Payment Mechanics ...............................................     27

9.       PERSONNEL .......................................................................     27

         9.1  Employees of DIVRE IV ......................................................     27

10.      REPRESENTATIONS AND WARRANTIES ..................................................     27

         10.1 Representations and Warranties of the Investor .............................     27

         10.2 Representations and Warranties of TELKOM ...................................     28

11.      OBLIGATIONS OF TELKOM ...........................................................     28

         11.1 Good Faith .................................................................     28

         11.2 Access to Information ......................................................     29

         11.3 Existing Installation ......................................................     29

         11.4 Co-Operation ...............................................................     29

         11.5 Indemnification ............................................................     29

         11.6 Access .....................................................................     30
</TABLE>

                                      -iii-

<PAGE>

<TABLE>
<S>      <C>                                                                                   <C>
12.      OBLIGATIONS OF THE INVESTOR......................................................     31

         12.1 Good Faith..................................................................     31

         12.2 Limitation on Encumbrances..................................................     31

         12.3 Indemnification.............................................................     32

         12.4 Ownership of Investor.......................................................     32

13.      EVENTS OF DEFAULT................................................................     33

         13.1 Events of Default by TELKOM.................................................     33

         13.2 Remedy upon Default.........................................................     33

14.      TERMINATION......................................................................     34

         14.1 Termination at End of KSO Period............................................     34

         14.2 Representations and Warranties..............................................     34

         14.3 Waiver of Article 1266......................................................     35

         14.4 Licenses and Warranties.....................................................     35

15.      DISPUTE RESOLUTION...............................................................     35

         15.1 Co-operative Negotiation....................................................     35

         15.2 Decision by Minister........................................................     36

         15.3 Arbitration.................................................................     36

         15.4 Binding Effect..............................................................     36

         15.5 Good Faith..................................................................     36

         15.6 Costs.......................................................................     37
</TABLE>

                                      -iv-

<PAGE>

<TABLE>
<S>      <C>                                                                                   <C>
16.      GENERAL .........................................................................     37

         16.1  Notice ....................................................................     37

         16.2  Governing Law .............................................................     38

         16.3  Language ..................................................................     38

         16.4  Interpretation ............................................................     38

         16.5  Confidentiality ...........................................................     39

         16.6  Force Majeure .............................................................     39

         16.7  Entire Agreement ..........................................................     40

         16.8  Severability ..............................................................     40

         16.9  No Waiver .................................................................     41

         16.10 Further Assurances ........................................................     41

         16.11 Benefit of this Agreement .................................................     41

         16.12 Assignment ................................................................     41

         16.13 Taxes .....................................................................     42

         16.14 Amendments ................................................................     42

17.      MISCELLANEOUS ...................................................................     42

         17.1 Mutual Waivers .............................................................     41

         17.2 Accounts Receivable ........................................................     43

         17.3 KSO Construction Agreement .................................................     43

         17.4 Loss of Exclusivity ........................................................     43

         17.5 Undertaking to Indosat .....................................................     43
</TABLE>

                                       -v-

<PAGE>

<TABLE>
<S>   <C>                                                                                      <C>
17.6  Prohibition on Payments in U.S. Dollars ............................................     44

17.7  License ............................................................................     44

Attachment A Description of the Territory.................................................     46

Attachment B License......................................................................     47

Attachment C Investor Revenues............................................................     48

Attachment D Irrevocable Payment Instruction..............................................     49

Attachment E Transition Payment Mechanics.................................................     52

Attachment F Power of Attorney (Pursuant to Section 13.2).................................     54

Attachment G Form of Mutual Waiver Between the Company and TELKOM.........................     57

Attachment H Form of Mutual Waiver Between Selling Shareholders and TELKOM................     62
</TABLE>

                                      -vi-
<PAGE>

                            AMENDED AND RESTATED KSO
                                    AGREEMENT

                          No.TEL 06/HK.810/UTA-00/2004

This AMENDED AND RESTATED KSO AGREEMENT (hereinafter referred to as the
"Agreement") is made on January 20, 2004,

BETWEEN:

Perusahaan Perseroan (Persero) PT. TELEKOMUNIKASI INDONESIA, Tbk, a limited
liability state owned public company for telecommunication operator established
under the law of the Republic of Indonesia, for which the Articles of
association have been published in the State Gazette of the Republic of
Indonesia Number 5 dated 17 January 1992, Supplement Number 210, as amended
several times and the latest amendment has been published in the State Gazette
of the Republic of Indonesia Number 45 dated 4 May 2002, Supplement Number 5495,
having its head office at Jalan Japati Number 1, Bandung 40133, Indonesia, in
this legal act duly represented by KRISTIONO, President Director, hereinafter
referred to as "TELKOM"

                                     - and-

PT. MITRA GLOBAL TELEKOMUNIKASI INDONESIA, a limited liability company owned by:

PT Alberta Telecommunication (99.99%)

Alberta Capital Partners Limited (0.01%)

for which the Articles of Association have been published in the State Gazette
of the Republic of Indonesia Number 97 dated 5 December 1995, Supplement Number
9985, as amended several times and lastly amended by Deed Number 70 dated 18
June

                                       1
<PAGE>

2002, made before Aulia Taufani, SH., substitute to Sutjipto, SH., Notary in
Jakarta, which has been reported to the Minister of Justice and Human Rights of
the Republic of Indonesia evidenced by his receipt dated 2 July 2002 Number C-
11893.HT.01.04.Th.2002 and has been registered with the South Jakarta Company
Registration Office on 10 September 2003 under Number 1110/RUB 0903/IX/2003,
having its registered office at Grata Surya Intemusa 10th Floor, Suite 1003,
Jalan HR Rasuna Said, Kav. X-O, Jakarta 12950, duly represented for this legal
action by Sandiaga Salahuddin Uno, President Director, hereinafter referred to
as the "Investor".

In consideration of and based on the following premises:

A.       whereas the Investor and TELKOM entered into the Original KSO Agreement
as defined below;

B.       whereas the Investor has planned, designed, constructed, financed and
operated in excess of 350,000 Access Line Units within the framework of a
co-operative joint operating scheme ("KSO") with TELKOM in the Territory on the
terms and conditions set forth in me Original KSO Agreement and the Original KSO
Construction Agreement as defined below;

C.       whereas the Investor and TELKOM wish to make certain adjustments to the
operational and financial terms of the Original KSO Agreement to permit more
efficient and effective operation of DIVRE IV and the KSO System during the
remaining term of the Original KSO Agreement; and

D.       whereas to give effect to such adjustments, the Investor and TELKOM
wish to amend and restate the Original KSO Agreement in its entirety, as
provided

                                       2
<PAGE>

herein.

NOW THEREFORE the parties hereto agree as follows:

ARTICLE 1 - INTERPRETATION

1.1      Definitions

         In this Agreement, unless the context otherwise requires:

(a)      Affiliate of any person means any party which controls, is controlled
by or under common control with such person, whether directly or indirectly. For
this purpose the term controls means the ownership of at least 50% of the voting
interests in the subject person and/or the ability to control in fact the
business and affairs of the subject person;

(b)      Auditor means the independent auditor of DIVRE IV appointed in
accordance with Section 6.5;

(c)      [reserved]

(d)      License Fee means the fee payable by DIVRE IV to the Department for the
Investor pursuant to the License;

(e)      KSO Operating Expenses has the meaning ascribed thereto in Section 8.6;

(f)      Department means the Department of Communications of the Republic of
Indonesia (DEPHUB);

(g)      Director General means the Director General of Post and
Telecommunications of the Department of Communications;

(h)      Head of Regional Division means the head of DIVRE IV appointed from
time to

                                       3
<PAGE>

time by TELKOM in accordance with Article 6, being the chief executive of DIVRE
IV;

(i)      Business Day means a day, other than a Saturday, Sunday or official
Indonesian holiday, on which commercial banks are open for business during
normal business hours in Jakarta;

(j)      License means the approval granted by the Minister to the Investor in
respect of the KSO, a copy of which is attached hereto as Attachment B;

(k)      DIVRE IV Employees means all the employees of TELKOM who are assigned
from time to time to DIVRE IV;

(l)      Telkom Representative means the non-executive officer appointed from
time to time by TELKOM in accordance with Article 6.

(m)      KSO means "Kerjasama Operasi" (joint operation scheme), which is the
cooperative arrangement entered into between TELKOM and the Investor pursuant to
the Original KSO Agreement and the Original KSO Construction Agreement for
purposes of the KSO Project;

(n)      Senior DIVRE IV Management means the top 3 levels of DIVRE IV
management (including the Head of Regional Division), as described in the
Management and Operations Plan, and the chief executive of each of the regions
(KANDATELs) in DIVRE IV, all as appointed from time to time hi accordance with
Article 6;

(o)      KSO Period means the period of time from the Implementation Date to the
later of 31 December 2010 and the date this Agreement is terminated pursuant to
Article 14;

                                       4
<PAGE>

(p)      Investor Revenues shall have the meaning set forth in Section 8.5;

(q)      Minister means the Minister of Communications of the Republic of
Indonesia;

(r)      Government means the Government of the Republic of Indonesia;

(s)      Balance of KSO Revenues for any calendar month means the net revenues
of DIVRE IV for that month stated in Rupiah and determined by deducting from the
Total KSO Revenues for that month:

         i)       the Rupiah equivalent of the Investor Revenues for that month
(calculated by multiplying the U.S. Dollar amount of the Investor Revenues by
the midpoint between the buying and selling rates of Bank Indonesia for the
Rupiah against the U.S. Dollar on the payment date); and

         ii)      the KSO Operating Expenses for that month;

(t)      Original KSO Construction Agreement means the KSO Construction
Agreement dated 20 October 1995 (as amended) which is terminated by this
Agreement as stated in Section 17.3;

(u)      Original KSO Agreement means the KSO Agreement dated 20 October 1995
and all schedules attached thereto, as amended, restated or supplemented from
time to time in accordance with the terms thereof including but not limited to:
Notes of Clarification (Side Letter) of the KSO Agreement, No.
PKS.8/HK830/UTA-00/1996, dated 9 January 1996, and the Memorandum of
Understanding on the Amendment of KSO Agreement, No.K.TEL51/HK810/UTA-00/98
dated 5 June 1998;

                                       5
<PAGE>

(v)      Existing Project means TELKOM's ongoing, planned and committed
telecommunication construction projects in the Territory on the Implementation
Date;

(w)      KSO Project means the planning, design, engineering, financing and
construction of the New Installation pursuant to the Original KSO Construction
Agreement including the upgrading of the Existing Installation, and the
management, operation, repair and maintenance of the KSO System by DIVRE IV
during the KSO Period;

(x)      KSO Account means the bank account of DIVRE IV established in
accordance with Section 8.2;

(y)      Management and Operations Plan means the annual management and
operations plan of DIVRE IV from time to time as approved pursuant to Article 5;

(z)      New Installation means the new telecommunications facilities and all
related supporting facilities, buildings, furnishings, computer and other
equipment, systems and other assets and resources, including replacements and
non maintenance related upgrades to the Existing Installation, required to be
provided or constructed by the Investor in accordance with the Original KSO
Construction Agreement, being comprised of the Minimum New Installation and the
Additional New Installation, if any;

(aa)     Minimum New Installation means the new telecommunications facilities
and all related supporting facilities, buildings, furnishings, computer and
other equipment, systems and other assets and resources, including replacements
and non maintenance related upgrades to the Existing Installation,

                                       6
<PAGE>

provided or constructed by the Investor pursuant to the Original KSO
Construction Agreement so as to provide a minimum of 350,000 new Access Line
Units in the Territory provided that subscriber drops and telephone sets are
required to be installed only on subscriber demand;

(ab)     Additional New Installation means the new telecommunications
facilities, if any, and all related supporting facilities, buildings,
furnishings, computer and other equipment, systems and other assets and
resources, including replacements and non maintenance related upgrades to the
Existing Installation, provided or constructed by the Investor following written
approval by the Minister pursuant to an addendum agreement entered into between
the Investor and TELKOM supplementing the Original KSO Construction Agreement;

(ac)     New TELKOM Installation means the new telecommunications facilities, if
any, and all related supporting facilities, buildings, furnishings, computer and
other equipment, systems and other assets and resources, including replacements
and non maintenance related upgrades to the Existing Installation and New
Installation, provided or constructed by TELKOM after the Effective Date in
accordance with Section 3.3;

(ad)     Existing Installation means:

         i)       all TELKOM's existing telecommunications facilities in the
Territory, including all related supporting facilities, reasonable test and
installation equipment and spare equipment and a

                                       7
<PAGE>

reasonable supply of parts inventories, relating to those existing
telecommunications facilities together with buildings, furnishings, computer and
other related equipment, systems and other assets and resources but excluding
the assets and resources relating to:

-        TELKOM's head office functions,

-        TELKOM Network Division, Atelier Division, SISFO (Information Systems
Centre) Division and Training Centre Division, to the extent they are not used
directly in the operation of TELKOM's existing telecommunications facilities
mentioned above,

-        TELKOM's mobile wireless facilities,

-        TELKOM's long distance network, including the Secondary Centers (SC)
and Tertiary Centers (TC), "Backbone Transmission" and facilities connecting
such centers and extending beyond them to connect with facilities of
international carriers, other KSO systems and TELKOM's local operating
territories;

         ii)      the new facilities constructed under the Existing Projects and
any other facilities constructed by TELKOM or a third party in accordance with
the Original KSO Construction Agreement;

         iii)     all maintenance related upgrades to the facilities referred to
in i) and ii) made by DIVRE IV during the KSO Period; and

         iv)      all new fixed telecommunications facilities constructed
pursuant to PBH revenue sharing agreements, if any, in respect of the Territory;

                                       8
<PAGE>

(ae)     Access Line Unit means all of the access and switching plant and
equipment, including one telephone set and, where necessary drops, feeder and
distribution plant, support facilities and structures and all related outside
plant, switching and transmission facilities required to provide subscribers
with access to the local telecommunications systems operated by DIVRE IV and the
long distance telecommunications systems operated by other TELKOM divisions;

(af)     KSO System means the integrated combination of the Existing
Installation, the New Installation and any New TELKOM Installation built in the
Territory by TELKOM after the Effective Date;

(ag)     Implementation Date means 1 January 1996;

(ah)     Effective Date means the date on which this Agreement is both (x)
signed by both parties and (y) title to 100% of the shares of the Investor is
registered in the Investor's share register in the names of PT. Alberta
Telecommunication and Alberta Capital Partners Limited as owners.

(ai)     Total KSO Revenues means the collected total revenues of DIVRE IV from
the operation of the KSO System and all interest earned thereon including
installation charges, fixed monthly charges and charges for other
telecommunications services offered to subscribers, pulse charges (except in the
case of international calls where only TELKOM's portion of the subscriber
revenues collected on pulse charges will be included), all revenues derived from
PBH basic telecommunications (wireline) services operations in the Territory,
TELKOM's portion of any settlement payments from international network providers
for international calls terminating in the

                                       9
<PAGE>

Territory, and payments from third party telecommunications network or service
providers such as interconnecting wireless telecommunications operators, WARTELs
and pay-phone operators. The term Total KSO Revenues shall include amounts
received by TELKOM following the end of the KSO Period in respect of the
operations of the KSO System during the KSO Period;

(aj)     DIVRE IV means TELKOM's Regional Division IV responsible for the
management and operation of the KSO System during the KSO Period, constituted as
a division of TELKOM and managed and operated by TELKOM in accordance with this
Agreement;

(ak)     Territory means the Regional Division IV Central Java
telecommunications operating area and the Special Territory of Yogyakarta, more
particularly described in Attachment A hereto.

1.2      Attachments

         The following arc the attachments attached hereto which are
incorporated herein by reference and deemed to be a part of this Agreement:

Attachment A - Description of the Territory
Attachment B - License
Attachment C - Investor Revenues
Attachment D - Irrevocable Payment Instruction

Attachment E - Transition Payment Mechanics
Attachment F - Power of Attorney
Attachment G - Mutual Waiver between TELKOM and the Investor

                                       10
<PAGE>

Attachment H - Mutual Waiver between TELKOM and the former shareholders of
               Investor

In the event of any inconsistencies between any of the Attachments and the main
body of this Agreement, the provisions of the main body of this Agreement shall
prevail. In the event of any inconsistencies between the provisions of the
License and the provisions of this Agreement the provisions of the License shall
prevail.

1.3      Headings

         The division of this Agreement into Articles and Sections and the
insertion of headings are for convenience of reference only and shall not affect
the construction or interpretation of this Agreement The terms "this Agreement",
"hereof", "hereunder" and similar expressions refer to this Agreement and not to
any particular Article, Section or other portion hereof and include any
agreement supplemental hereto. Unless something in the subject matter or context
is inconsistent therewith, references herein to Articles and Sections are to
Articles and Sections of this Agreement.

1.4      Extended Meanings

         In this Agreement words importing the singular number only shall
include the plural and vice versa, words importing gender shall include all
genders and words importing persons shall include individuals, sole
proprietorships, partnerships, associations, trusts, joint ventures,
unincorporated organizations, corporations, States, governments and governmental
entities.

                                       11
<PAGE>

ARTICLE 2 - KSO IN DIVRE IV

2.1      Cooperation

         TELKOM and the Investor agree to work co-operatively, diligently and in
good faith in the implementation of this Agreement.

2.2      DIVRE IV Operations

         DIVRE IV shall manage, operate, repair and maintain the KSO System
during the KSO Period in accordance with this Agreement and all applicable law.
DIVRE IV shall be managed in accordance with Article 6. During the KSO Period,
the Investor shall make available and provide to DIVRE IV the New Installation
(including the land and leasehold interests on which certain of the New
Installation is situated) for the use by DIVRE IV. TELKOM acknowledges that the
Investor provides and makes available the New Installation and such land and
leasehold interests to DIVRE IV on an "as is, where is" basis as of the
Effective Date, and the Investor and TELKOM agree that DIVRE IV and TELKOM shall
bear full responsibility for the upkeep and maintenance of and repairs to the
New Installation and for payment of all rents and other amounts relating to the
land and leasehold interests during the KSO Period.

2.3      Status of DIVRE IV

         DIVRE IV is a division of TELKOM managed and operated by TELKOM in
accordance with this Agreement. The business of DIVRE IV shall be fully
segregated from the other business operations of TELKOM, including the operation
and management of other TELKOM divisions. Except as provided herein, during the
KSO Period, TELKOM will allocate the DIVRE IV Employees, the Existing
Installation and any

                                       12
<PAGE>

telecommunication facilities built in the Territory by TELKOM after the
Effective Date to the exclusive use of DIVRE IV.

2.4      Protection of TELKOM's Interest

         The Investor hereby expressly acknowledges and agrees that it shall
have no right or interest in the Existing Installation or New TELKOM
Installation or any other assets of TELKOM other than as expressly provided for
in this Agreement. During the KSO Period, DIVRE IV and the Investor shall take
all such action as may be necessary to protect and safeguard TELKOM's right,
title and interest in the Existing Installation and New TELKOM Installation and
shall not sell, transfer, pledge, assign or otherwise encumber all or any part
of the Existing Installation or New TELKOM Installation.

2.5      Protection of the Investor's Interest

TELKOM hereby expressly acknowledges and agrees that it shall have no right or
interest in the New Installation or any other assets of the Investor other than
as expressly provided for in this Agreement. During the KSO Period, DIVRE IV and
TELKOM shall take all such action as may be necessary to protect and safeguard
the Investor's rights, title and interest in the New Installation and shall not
sell, transfer, pledge, assign or otherwise encumber all or any part of the New
Installation.

                                       13
<PAGE>

ARTICLE 3 - CONSTRUCTION

3.1      Ownership of New Installation

         Until ownership is transferred to TELKOM in accordance with this
Agreement, the New Installation shall be and remain the exclusive property of
the Investor and without limiting the generality of the foregoing TELKOM shall
not acquire any right or interest therein during the KSO Period other than
pursuant to this Agreement.

3.2      Completion of any New Installation and Other Capital Expenditure

         From and after the Effective Date, TELKOM shall be solely responsible
for completing any uncompleted construction on the Effective Date deemed
feasible by and in accordance with TELKOM's program, and TELKOM acknowledges
that after the Effective Date the Investor shall have no financial or other
obligation of any kind to complete any of the New Installation or incur any
other capital or operating expenditure whatsoever, provided, however, that the
Investor shall be responsible for paying operational capital expenses incurred
from the Effective Date until 31 December 2003 in an amount not to exceed Rp.
500 million.

3.3      TELKOM Construction Right

         From and after the Effective Date, TELKOM shall be entitled at any time
to construct at its sole discretion and at its sole expense (and not at the
expense of DIVRE IV or Investor) any New Telkom Installation in the Territory.

                                       14
<PAGE>

ARTICLE 4 - PERFORMANCE OBJECTIVES

         DIVRE IV shall at all times cooperate with TELKOM and other
telecommunications operators in Indonesia including other TELKOM divisions to
ensure that there is an adequate and timely flow of information between them
such that (i) appropriate network planning and provisioning can occur and (ii)
below-target or otherwise unacceptable performance of the KSO System or the
systems operated by such other telecommunications operators is not due to
inadequate or untimely provision of such traffic demand or other information.

ARTICLE 5 - MANAGEMENT AND OPERATIONS PLAN

5.1      Approval of Plan

         DIVRE IV shall be operated at all times in accordance with a Management
and Operations Plan approved annually under this Article 5. The Head of Regional
Division shall prepare and submit to TELKOM a draft Management and Operations
Plan for each year. Following discussion and consultation in good faith with
TELKOM, the Head of Regional Division shall make changes, if any, to such plan
as he deems advisable and shall thereafter approve such plan in writing prior to
the start of the applicable year. A copy of all final Management and Operations
Plans approved pursuant to this Section 5.1 shall "be delivered forthwith by the
Head of Regional Division to TELKOM and the Investor on or before 31 December of
each year during the KSO Period.

                                       15
<PAGE>

5.2      Changes to Plan

         An approved Management and Operations Plan may be changed from time to
time with the approval of the Head of Regional Division. Prior to approving any
such change, the Head of Regional Division shall give notice to TELKOM setting
out in detail the proposed change and any relevant background information.
Following discussion and consultation in good faith with TELKOM, Head of
Regional Division shall approve the proposed change with such modifications, if
any, as recommended to him. Notice of all approved changes to a Management and
Operations Plan, including a copy of the revised plan, shall be delivered
forthwith by the Head of Regional Division to TELKOM and the Investor.

5.3      Content of Plan

         The Management and Operations Plan shall contain plans for the
management and operation of DIVRE IV and the KSO System to a world class
standard and shall include at a minimum a detailed work program, business plan
and personnel plan and financial performance targets for the year and planning
outlines for future years, detailed information in respect of the organizational
and management structure of DIVRE IV, the job descriptions and qualifications
for the Senior DIVRE IV Management, the identity, terms of engagement and scope
of work to be performed by any third party contractors, the business approach to
operations and service provisioning and the specific steps to be taken with a
view to achieving all applicable, performance targets, the marketing strategy
and the system for monitoring and evaluating marketing performance, the approach
to maintenance and repair of the

                                       16
<PAGE>

KSO System including performance measurement and quality controls measurement
methodologies and the human resources and research and development plans to be
pursued hereunder.

ARTICLE 6 - OPERATION AND MANAGEMENT OF DIVRE IV

6.1      Role of TELKOM

         Except as expressly provided for herein, during the KSO Period, DIVRE
IV will operate under the management, supervision, control and responsibility of
TELKOM. Without limiting the generality of the foregoing, TELKOM shall promptly
take all action necessary to delegate to the Head of Regional Division the
broadest possible powers to manage and direct the operation of DIVRE IV and the
KSO System. TELKOM shall maintain or obtain or shall cause DIVRE IV to maintain
or obtain, as the case may be, all the licenses that ore required for the
operations of DIVRE TV and the KSO System.

6.2      Head of Regional Division

         DIVRE IV shall be headed by the Head of Regional Division appointed by
TELKOM in accordance with Section 6.3. Except as provided for herein, the Head
of Regional Division shall have full and complete day to day management,
financial and operational control and responsibility for DIVRE IV. Without
limiting the generality of the foregoing and subject always to the terms of this
Agreement, the Head of Regional Division shall be responsible for the
implementation of Management and Operations Plans and to implement the
appointment, replacement and determination of the terms of employment of the
Senior DIVRE IV Management and all DIVRE IV Employees and subcontractors. The
salary and benefits

                                       17
<PAGE>

payable to the Head of Regional Division shall be determined and paid by
TELKOM.

6.3      Appointment of Head of Regional Division and Senior KSO Management

         TELKOM shall appoint the Head of Regional Division and Senior DIVRE IV
Management from time to time in its sole discretion.

6.4      Telkom Representative

         The Telkom Representative shall be appointed by TELKOM with full rights
of substitution at any time. The Investor shall rely on the directions,
approvals, agreements and determinations of the Telkom Representative as the
official directions, approvals, agreements and determinations of TELKOM.

6.5      Auditor

         The Auditor of DIVRE IV shall be the reputable, international firm of
auditors appointed from time to time as the independent auditor of TELKOM or if
no such independent, international auditor is appointed, a reputable,
independent, international auditor appointed by TELKOM. The Auditor shall audit
and report on the annual financial statements of DIVRE IV and shall perform such
other services as may be provided for in this Agreement or as may be requested
from time to time by the Head of Regional Division. The reasonable fees and
expenses of the Auditor incurred in respect of DIVRE IV shall be paid by DIVRE
IV. Unless required by this Agreement or applicable law, the Auditor shall
perform all audits and other tasks using reasonable commercial assumptions and
Indonesian generally accepted accounting principles, consistently applied.

                                       18
<PAGE>

6.6      Insurance

         DIVRE IV shall obtain and maintain in force during the KSO Period such
insurance in respect of its operations, the KSO System and all other assets
owned or used by DIVRE IV from time to time comparable to the insurance in
effect during the life of the KSO System prior to the Effective Date. All such
insurance shall be provided by a reputable insurance company operating in
Indonesia on terms approved in advance by the Head of Regional Division.

         All proceeds arising from an insurance claim for damages or loss to the
New Installation shall be used or applied to repair or replace the damaged
property. TELKOM acknowledges that damages or destruction to the KSO System, no
matter how extensive and whether or not insured, will not affect the right of
the Investor to receive Investor Revenues and other amounts as provided in this
Agreement.

6.7      Indonesian Resources

         DIVRE IV shall, to the extent reasonably possible in the circumstances,
make maximum use in its operations of available Indonesian domestic human and
material resources, goods and services. Without limiting the generality of the
foregoing, TELKOM resources and services, including the Personnel Assessment
Center (Bandung), the Training Center (Divisi Pelatihan), the Information
Systems Center (Divisi SISFO), Network Division, Atelier Division and the repair
centers and property management, shall be utilized by DIVRE IV where such
services are appropriate to the requirements of DIVRE IV. All such

                                       19
<PAGE>

resources and services shall be made available to DIVRE TV by TELKOM on
reasonable commercial and competitive terms pursuant to arrangements made
between the Head of Regional Division and TELKOM.

ARTICLE 7 - REPORTS AND AUDITS

7.1      Fiscal Year

         DIVRE IV shall have a fiscal year ending 31 December in each year.

7.2      Monthly Reports

         DIVRE IV management shall prepare monthly financial statements for
DIVRE IV in accordance with Indonesian generally accepted accounting principles,
consistently applied. The unaudited monthly financial statement shall be
submitted to TELECOM and the Investor within 15 days after the closing of the
books of each month during the KSO Period. Within 30 days after the closing of
the books for that month, the Head of Regional Division shall prepare and submit
to TELKOM and the Investor monthly reports on the management; operations and
finance of DIVRE IV, including copies of monthly financial statements (audited
if required by law), all calculations required to be set out therein for
purposes of this Agreement, progress reports made with reference to the
Management and Operations Plan and reports on any other matters which the Head
of Regional Division may deem relevant.

7.3      Annual Audit and Report

         DIVRE IV management shall prepare annual financial statements for DIVRE
IV in accordance with Indonesian generally accepted accounting principles,

                                       20
<PAGE>

consistently applied. Such annual financial statements shall be audited by the
Auditor. Within 90 days after the end of each year during the KSO Period, the
Head of Regional Division shall prepare and submit to TELKOM and the Investor an
annual report on the management, operations and finance of DIVRE IV during the
preceding year including copies of the audited financial statements with the
Auditor's notes and comments thereon, all calculations required to be set out
therein for purposes of this Agreement, progress reports made with reference to
the Management and Operations Plan for the preceding year, and reports on any
other matters which the Head of Regional Division may deem relevant.

ARTICLE 8 - FINANCE

8.1      Source of Funds

         It is intended that the operations of DIVRE IV shall be funded
exclusively out of Total KSO Revenues. However, if at any time DIVRE IV is
unable to finance its operations, TELKOM shall be required to contribute funds
to finance such operations. In no circumstances shall the Investor be required
to contribute funds. DIVRE IV shall not enter into any agreement for the lending
or borrowing of funds.

8.2      KSO Account

         At all times DIVRE IV shall maintain the KSO Account at a reputable
foreign bank in Indonesia acceptable to both the Investor and TELKOM and shall
establish such banking procedures and signing authorities in respect of such
account as TELKOM may from time to time direct in accordance with this
Agreement.

                                       21
<PAGE>

8.3      Revenues

         All DIVRE IV revenues shall be deposited to the KSO Account immediately
on receipt. DIVRE IV shall diligently pursue the collection of all such revenues
and TELKOM shall lend all such assistance, including the pursuit of legal
action, as may be requested by the Head of Regional Division to ensure all DIVRE
IV revenues are collected in a timely manner. No accounts receivable of DIVRE IV
will be written off except in accordance with Indonesian generally accepted
accounting principles, and in accordance with the prevailing laws and
regulations.

8.4      Use and Segregation of Funds

         Funds standing to the credit of the KSO Account shall be used each
month only for payment of the following amounts and such funds shall be applied
in the following order. First, for payment in full of the Investor Revenues;
second, for payment in full of the KSO Operating Expenses; and third, for the
payment of Balance of KSO Revenues. Without limiting the generality of the
foregoing, no security interest may be granted over the KSO Account or Total KSO
Revenues. Total KSO Revenues and any interest earned thereon shall at all times
be kept separate from and shall not be co-mingled with any other revenues or
funds of TELKOM or the Investor. Except for rights and interests expressly
provided for hereunder, TELKOM and the Investor hereby expressly waive any
proprietary right or interest in Total KSO Revenues or any interest earned
thereon.

8.5      Investor Revenues

The Investor Revenues means, in respect of any month during the KSO Period, the
U.S.

                                       22
<PAGE>

Dollar amount payable in respect of that month as set out in Attachment C (the
"Investor Revenues"). The Investor Revenues shall be paid to the Investor from
the KSO Account in U.S. Dollars in accordance with Attachment C monthly.
Notwithstanding the previous sentence, for the first six payments of the
Investor Revenues, the Investor may, hi its sole discretion upon timely written
notice to TELKOM and DIVRE IV, direct that part or all of the Investor Revenues
constituting one or more of these first six payments be paid in Rupiah
calculated based on the midpoint between the buying and selling rates of Bank
Indonesia for the Rupiah against the U.S. Dollar on the date the payment is
made. The Investor Revenues shall be paid within 7 days of the end of the month
to which it relates by automatic transfer to a bank account designated by the
Investor. (If the date 7 days after the end of the month falls on a day which is
not a Business Day, then the payment shall be made on the immediately following
day which is a Business Day, except that for the first six payments of the
Investor Revenues, if the day 7 days after the end of the month falls on a day
which is not a Business Day then the payment shall be made no later than the
immediately preceding day which is a Business Day.) For (he avoidance of doubt,
the first payment of the Investor Revenues shall be made on the day not later
than 7 days after the month in which the Effective Date occurs, and the last
payment of the Investor Revenues shall be made on the day not later than the
7th day of the first month after the end of the KSO Period. TELKOM shall
provide or shall cause DIVRE IV to provide an irrevocable payment instruction,
in form and substance as set forth in Attachment D, to the KSO Account on the
Effective Date and annually thereafter no fewer than two Business Days before
the seventh day of every calendar year during the KSO Period, instructing that
the monthly payment of the Investor Revenues be made as set forth in

                                       23
<PAGE>

Attachment C.

8.6      KSO Operating Expenses

         The KSO Operating Expenses shall be paid out of the KSO Account as and
when due. For purposes of this Agreement, "KSO Operating Expenses" means the
total non capital expenses directly incurred by DIVRE IV in the operation of the
KSO System, including:

(a)      remuneration and benefits paid to DIVRE IV Employees;

(b)      general and administration;

(c)      materials and transportation;

(d)      repairs and maintenance;

(e)      training;

(f)      research and development;

(g)      refunds paid to subscribers;

(h)      value-added tax;

(i)      payment on behalf of the Investor of License Fee payments (the parties
agree that the cost of the License Fee will be paid on behalf of the Investor
and borne by DIVRE IV);

(j)      interconnection charges paid to other carriers and arising from calls
or services originating in the Territory;

(k)      licence fees for radio frequency;

(l)      revenue shares paid to PBH operators;

                                       24
<PAGE>

(m)      all other direct operating expenses including the cost of insurance
obtained in accordance with Section 6.6;

provided, however, that the following amounts shall not be included in KSO
Operating Expenses:

         (i)      depreciation, amortization, interest and financing charges in
respect of the Existing Installation, the New Installation and any other
installation;

         (ii)     income taxes payable by TELKOM or the Investor in respect of
DIVRE IV revenue; and

         (iii)    the expenses of the Investor and TELKOM incurred outside DIVRE
IV including head office administration costs and management fees payable to
shareholders of the Investor.

8.7      Balance of KSO Revenues

         TELKOM is entitled to all of the Balance of KSO Revenues.

         At the end of each month the Head of Regional Division will calculate
the amount, if any, of the Balance of KSO Revenues as of the last day of such
month, and at the latest within 10 days of the end of the month to which the
payment relates the amount so calculated shall be paid from the KSO Account by
Rupiah by automatic transfer to the account designated by TELKOM. (If the
payment date falls on a day which is not a Business Day, then the payment shall
be made on the immediately following day which is a Business Day). (For the
avoidance of doubt, the final payment of Balance of KSO Revenues will be made
during the month immediately following the last month of the KSO Period.) Any
dispute arising between the Investor and TELKOM with respect to the amount or
the calculation of the Balance of KSO Revenues shall be

                                       25
<PAGE>

referred to the Auditor, and the Auditor's decision shall be final and binding
and not subject to arbitration. No payment of Balance of KSO Revenues shall be
made to TELKOM unless and until all payments of Investor Revenues for that month
and all prior periods have been paid in full.

8.8      TELKOM Deficiency Undertaking

         In the event DIVRE IV has insufficient funds to pay the Investor
Revenues owing and payable to the Investor with respect to any month (the amount
of such insufficiency, the "Deficiency"), TELKOM shall, with no requirement for
demand by the Investor, pay on the due date for such payment the full amount of
the Deficiency to the account to which such payment is payable. TELKOM's
obligation to pay the Deficiency during the KSO Period shall be unconditional
and shall rank pari passu with TELKOM's other unsecured obligations. TELKOM'S
right to receive the Balance of KSO Revenues pursuant to Section 8.7 is
subordinated to the Investor's right to receive the Investor Revenues.

8.9      Effect of Termination

         Within 7 days following the termination of this Agreement pursuant to
Section 14.1, TELKOM shall pay to the Investor any Investor Revenues which have
not been previously paid. The obligations of TELKOM under this Section 8.9 shall
survive termination of this Agreement.

8.10     Late Payment

         If DIVRE IV or TELKOM fails to pay when due the Investor Revenues or
any

                                       26
<PAGE>

other amount payable to the Investor, then interest shall accrue on such unpaid
amount until the date of payment in full at the rate of 2% per month for each
month or partial month. Such interest shall be payable on demand by the
Investor. By way of illustration, a payment that is late by one month and one
day shall accrue interest calculated as 4% of such late payment.

8.11     Transition Payment Mechanics

         Set forth in Attachment E are instructions for making payments of
Investor Revenues and the Balance of KSO Revenues with respect to the month in
which the Original KSO Agreement is amended and restated by this Agreement.

ARTICLE 9 - PERSONNEL

9.1      Employees of DIVRE IV

         The DIVRE IV Employees shall remain employees of TELKOM. The
compensation and other benefits payable to, and other applicable rules and
policies for the DIVRE IV Employees during the KSO Period shall be as determined
by DIVRE IV management and must be approved in advance in writing by TELKOM.
The Head of Regional Division shall consult with TELKOM prior to making any
change in the organizational structure of DIVRE IV.

ARTICLE 10 - REPRESENTATIONS AND WARRANTIES

10.1     Representations and Warranties of the Investor

                                       27
<PAGE>

         The Investor hereby represents and warrants to TELKOM as follows:

(a)      the Investor is a limited liability company established and operating
under the laws of the Republic of Indonesia with the legal status, power and
capacity to enter into this Agreement and to perform its obligations hereunder
and thereunder; and

(b)      this Agreement constitutes legally valid and binding obligations of the
Investor enforceable against the Investor in accordance with their respective
terms and the person or persons signing this Agreement on behalf of the Investor
are duly empowered to do so.

10.2     Representations and Warranties of TELKOM

         TELKOM hereby represents and warrants to the Investor that it has the
requisite legal status power and capacity to enter into this Agreement and to
perform its obligations hereunder and thereunder and that this Agreement
constitutes legally valid and binding obligations enforceable against TELKOM in
accordance with their respective terms and the person or persons signing this
Agreement on behalf of TELKOM are duly empowered to do so.

ARTICLE 11 OBLIGATIONS OF TELKOM

11.1     Good Faith

         TELKOM shall perform its obligations under this Agreement promptly,

                                       28
<PAGE>

diligently, in good faith and in a cooperative spirit in accordance with all
applicable law and shall promptly take all action within its power to cause
DIVRE IV and the DIVRE IV Employees to comply with and perform this Agreement.

11.2     Access to Information

         TELKOM shall on written request without charge and within a reasonable
time grant the Investor access to all pertinent information related to the
operation of the KSO System which is not subject to an obligation of
confidentiality and shall give all such further assistance in due time as may be
reasonably requested in writing by the Investor or DIVRE IV for purposes of
carrying out the provisions of this Agreement in accordance with applicable law.

11.3     Existing Installation

         TELKOM shall ensure that the Existing Installation is at all times
during the KSO Period available for use in the KSO System by DIVRE IV.

11.4     Co-Operation

         TELKOM shall not knowingly take or omit to take any action which could
interfere with or interrupt the normal functioning of the KSO System in the
Territory except in accordance with applicable law or with reasonable cause
relating to the safe and proper operation of the Indonesian telecommunications
network.

11.5     Indemnification

         TELKOM shall indemnify and save harmless the Investor in respect of all

                                       29
<PAGE>

damages, losses or costs incurred by the Investor as the result of any material
breach by TELKOM or any of its employees or subcontractors of any term,
representation, warranty, covenant or other obligation in this Agreement. TELKOM
shall further indemnify and save harmless the Investor in respect of all
damages, losses or costs incurred by the Investor as a result of any action,
suit, proceeding or claim made by third parties who have suffered loss, injury
or damage in connection with this Agreement. The indemnification provided for in
this Section 11.5 shall survive the termination of this Agreement. In no case
shall the Investor be entitled to its indirect or consequential losses or
damages, whether or not such losses or damages are subject to this indemnity.

11.6     Access

         TELKOM shall without charge provide the Investor, upon prior notice
from the Investor and during working hours, with access to information, the
sites, locations and other facilities as may be reasonably required by the
Investor hereunder, and will also provide such access to the Investor as
required by the Investor to defend itself against any legal actions, lawsuits,
proceedings or claims made by third parties who have suffered loss, injury or
damage in connection with the Original KSO Agreement or otherwise in any manner
related to the Original KSO Construction Agreement. Upon TELKOM's request, the
Investor shall provide to TELKOM evidence of such legal actions. For the
avoidance of doubt, the Investor's right to access as described in this Section
11.6 does not mean that the Investor has any right to participate in the
management or operation of the KSO except as specifically provided in this
Agreement.

                                       30
<PAGE>

ARTICLE 12 - OBLIGATIONS OF THE INVESTOR

12.1     Good Faith

         The Investor shall perform each of its obligations under this Agreement
promptly, diligently, in good faith and in a cooperative spirit in accordance
with applicable law to comply with and perform this Agreement.

12.2     Limitation on Encumbrances

         During the KSO Period the Investor shall take all such action as may be
necessary to protect and safeguard its right, title and interest in the New
Installation and shall not sell, transfer, pledge, assign or otherwise encumber
any of its rights in or to all or any part of the New Installation without the
prior written consent of TELKOM, provided however, that the Investor may
mortgage, pledge or otherwise encumber its interest in the New Installation in
favor of a third party, if such third party agrees in writing to subordinate its
interest in the New Installation to the rights of TELKOM:

(a)      to use such New Installation in the KSO System during the KSO Period
in accordance with this Agreement; and

(b)      to acquire the New Installation free and clear of any encumbrances in
accordance with Sections 14.1 and 14.2.

                                       31
<PAGE>

12.3     Indemnification

         The Investor shall indemnify and save harmless TELKOM in respect of all
damages, losses or costs incurred by TELKOM as a result of any material breach
by the Investor or any of its employees of any term, representation, warranty,
covenant or other obligation in this Agreement. The indemnification provided for
in this Section 12.3 shall survive the termination of this Agreement. In no case
shall TELKOM be entitled to its indirect or consequential losses or damages,
whether, or not such losses or damages are subject to this indemnity.

12.4     Ownership of Investor

         The Investor shall not make or permit any change in its ownership
structure during the KSO Period without the prior consent of TELKOM, except a
change in the ownership of the Investor that results from a transfer of
ownership to its Affiliate, a merger of the Investor and an Affiliate whereby
the Investor will be the surviving company, a transfer of ownership to a
reputable financial institution in relation to a pledge or other encumbrance of
such shares or a pledge of the Investor's shares, all of which shall not require
prior consent The Investor shall provide reasonable documentary evidence to
TELKOM that the transferee is its Affiliate. The Investor shall promptly notify
TELKOM of any proposed change in its ownership structure.

                                       32
<PAGE>

ARTICLE 13 - EVENTS OF DEFAULT

13.1     Events of Default by TELKOM

         The Investor may take the actions set forth in Section 13.2 upon the
occurrence of an uncured material breach by TELKOM of any of its material
obligations under this Agreement.

13.2     Remedy upon Default

         Upon the occurrence of an uncured material breach by TELKOM of any of
its material obligations under this Agreement, the Investor may give written
notice to TELKOM stating the nature and extent of the default and, if such
notice is given and the default is not remedied to the reasonable satisfaction
of the Investor within 7 Business Days (in the case of a payment default) and
10 Business Days (in the case of all other defaults) of the date of such notice,
the Investor may take the following actions at the end of the said 7 or 10, as
relevant, Business Days period by notice of the Investor. Upon delivery by the
Investor of such notice to TELKOM, the Investor may in its sole discretion
assume full operational and financial control of DIVRE IV and the KSO System
(including control of the Total KSO Revenues and signature authority with
respect to the KSO Accounts) and TELKOM shall take all steps necessary to permit
the Investor to assume such operational and financial control (including
provision to the Investor on the Effective Date of irrevocable powers of
attorney in the form of Attachment F required by the Investor to assume such
financial and operational control, including control of the Total KSO Revenues
and signature authority with respect to the KSO Accounts, such powers of
attorney to become effective with no further action upon the occurrence of an

                                       33

<PAGE>

uncured material breach by TELKOM of any of its material obligations under the
Agreement), and Total KSO Revenues shall be applied in payment of amounts owing
to the Investor under this Agreement, with such operational and financial
control being returned to TELKOM upon payment in full of amounts owing to the
Investor under this Agreement.

ARTICLE 14 - TERMINATION

14.1     Termination at End of KSO Period

         This Agreement shall terminate on 31 December 2010, at which time all
right, title and interest of the Investor in the New Installation shall be
transferred to TELKOM, on an "as is where is" basis, effective without requiring
any further action by any party, or payment by TELKOM to the Investor; provided,
however, that if amounts are owed to the Investor under the Agreement on 31
December 2010, the KSO Period shall be extended, and the New Installation shall
not be transferred to TELKOM, until all amounts owed to the Investor have been
fully paid.

14.2     Representations and Warranties

         The Investor shall, at the time of transfer of the New Installation to
TELKOM in accordance with this Article 14, be deemed to represent and warrant to
TELKOM that the New Installation is being

                                       34

<PAGE>

transferred to TELKOM free and clear of any liens, charges, encumbrances or any
other rights of others.

         This representation and warranty of the Investor made pursuant to this
Section 14.2 shall survive the termination of this Agreement and shall remain
enforceable against the Investor notwithstanding such termination and this
Agreement shall remain in force for such purpose.

14.3     Waiver of Article 1266

         The parties expressly waive Article 1266 of the Indonesian Civil Code
to the extent necessary to effect termination of this Agreement in accordance
with this Article 14 without the need for a court decision.

14.4     Licenses and Warranties

         Any licenses for the use of intellectual property rights, product or
equipment warranties or other rights or contracts in the name of the Investor,
if any and deemed necessary by TELKOM, relating to the New Installation or its
operation within the KSO System shall be assigned or otherwise transferred to
TELKOM at the expense of TELKOM on the date of transfer of the New Installation
to TELKOM pursuant to this Article 14.

ARTICLE 15 - DISPUTE RESOLUTION

15.1     Co-operative Negotiation

         The parties hereto shall use their best efforts and shall co-operate
and negotiate in good faith to resolve any and all disputes which may arise
between them relating to this Agreement or the KSO Project

                                       35

<PAGE>

(hereinafter in this Article 15 referred to as a "Dispute"). The Parties agree
that for a period of 30 days after the receipt by one party of a written notice
from the other party of the existence of a Dispute, they will attempt to settle
the Dispute by amicable discussion between the Parties.

15.2     Decision by Minister

         Any Dispute which relates to the implementation of regulatory or policy
matters dealt with in the License shall be referred to and decided by the
Minister. A decision of the Minister in respect of such a Dispute shall be final
and binding and shall not be subject to appeal to any Court or arbitral
tribunal.

15.3     Arbitration

         If the parties hereto are unable to reach a written agreement to settle
the Dispute within the 30-day period set forth in Article 15.1, then either
party may submit the Dispute to arbitration under the Rules of Conciliation and
Arbitration of the International Chamber of Commerce in Geneva by one or more
arbitrators appointed in accordance with the said Rules.

15.4     Binding Effect

         The parties hereto hereby consent and agree that any arbitral award
made pursuant to Section 15.3 shall be final and binding and may be used as a
basis for enforcement thereon in the Republic of Indonesia or elsewhere.

15.5     Good Faith

         Each party agrees to participate in

                                       36

<PAGE>

negotiation or arbitration pursuant to this Article 15 in good faith and in a
co-operative manner with a view to resolving any and all Disputes on an
equitable and expedited basis and, without limiting the generally of the
foregoing, agrees to make available in such process all documents, data and
members of its personnel, including its senior management and officers, to the
extent reasonably necessary in the circumstances.

15.6     Costs

         Subject to the award of the arbitral tribunal, each party shall be
responsible for its own costs and expenses incurred in connection with any
Dispute resolution process hereunder and the costs and expenses of the
arbitrators and the forum shall be borne equally by the parties.

ARTICLE 16 - GENERAL

16.1     Notice

         Any demand notice or other communication to be made or given hereunder
shall be in writing and made by facsimile transmission or by personal delivery
addressed to the respective party as follows:

To TELKOM:

         Perusahaan Perseroan (Persero)
         PT Telekomunikasi Indonesia
         Jl. Japati No. 1
         Bandung 40133
         Attention: President Director
         Facsimile: (022)440-313

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<PAGE>

To the Investor:

         PT Mitra Global Telekomunikasi
         Indonesia
         Jalan Medan Merdeka Barat No. 21
         Jakarta 10110
         Attention: President Director
         Facsimile: (021) 344-6018

or to such other address, person or telecopy or facsimile number as any party
may from time to time notify to the others in accordance with this Section 16.1.
Any demand, notice or other communication made or given pursuant hereto shall be
conclusively deemed to have been made or given on the day of actual delivery
thereof if delivered during the normal business hours of the recipient and, if
delivered outside such hours, on the day on which such normal business hours
next occur.

16.2     Governing Law

         This Agreement shall be governed by and construed and interpreted in
accordance with the laws of the Republic of Indonesia without giving effect to
the conflicts of law provisions thereof.

16.3     Language

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

16.4     Interpretation

         Each of the parties hereto expressly acknowledges its intention that
this Agreement be construed, interpreted and enforced in accordance with the
true spirit, intent, meaning and purpose hereof and in light of the
circumstances in which it was made.

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<PAGE>

16.5     Confidentiality

         Except to the extent required by applicable law, no party to this
Agreement may communicate or use any confidential information ("Confidential
Information") or permit the communication or use of Confidential Information to
or by any person other than its own shareholders, lenders, professional
advisers, management, personnel, employees and sub-contractors who need to know
or use such Information for purposes related to the KSO Project. For purposes of
this Section 16.5, Confidential Information shall mean all technical and
commercial information in whatever form having technical or commercial value
which is obtained by a party hereto as a result of or in connection with the KSO
System and which is not in the public domain. All information marked
"Confidential" by a party hereto shall be treated for all purposes by the
parties hereto as Confidential Information under this Section 16.5 unless and
until it is clearly demonstrated by a party hereto that such information is not
Confidential Information as herein defined. The provisions of this Section 16.5
shall survive the termination of this Agreement.

16.6     Force Majeure

         The obligation of any party hereunder, except for the obligation to
make payments of money when due, shall be suspended to the extent and during the
period that performance is prevented by any labor dispute, act of God, law,
regulation or order of any government or governmental entity, judgment or order
of

                                       39

<PAGE>

any courts, act of war or condition arising out of or attributable to war,
whether declared or undeclared, riot, terrorism or other criminal activity,
insurrection or rebellion, fire, explosion, earthquake, storm, flood, volcanic
eruption, drought or other severe and unusual adverse weather conditions,
accident, or any other cause similar to the foregoing. The parties agree that
there shall be no renegotiation of the terms or conditions of this Agreement on
account of changes in economic conditions or the condition of the business of
DIVRE IV or for any other reason.

16.7     Entire Agreement

         This Agreement constitutes the entire agreement between the parties
hereto with respect to the subject matter hereof and cancels and supersedes any
prior understandings and agreements between the parties hereto with respect
thereto. There are no representations, warranties, terms, conditions,
undertakings or collateral agreements expressed, implied or statutory between
the parties other than as expressly set forth in this Agreement

16.8     Severability

         If any provision of this Agreement is determined to be invalid or
unenforceable in whole or in part, such invalidity or unenforceability shall
attach only to such provision or part thereof and the remaining part of such
provision and all other provisions hereof shall continue in full force and
effect.

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<PAGE>

16.9     No Waiver

         Failure on the part of a party hereto to exercise any right under this
Agreement or failure on the part of a party to insist that another party adhere
to the strict terms of this Agreement will not constitute a repudiation of the
terms of this Agreement and will not be considered waiver by such party of its
right to demand at a later date strict adherence to the terms of this Agreement.

16.10    Further Assurances

         Each of the parties hereto shall from time to time execute and deliver
all such further documents, instruments and further assurances and do or refrain
from doing all such further acts and things as the other party may from time to
time reasonably require to effectively carry out or better evidence or perfect
the true spirit, intent, meaning and purpose of this Agreement.

16.11    Benefit of this Agreement

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

16.12    Assignment

         The rights of a party arising under this Agreement may not be assigned
by any party without the prior written consent of the other party, except to its
Affiliate or a reputable financial institution. The parties agree that formal
notice of assignment will constitute a notice under Article 613 paragraph 2 of
the Indonesian Civil Code. The obligations of a party arising under this
Agreement may only be delegated by either party to any person with the prior
consent of

                                       41

<PAGE>

the other party.

16.13    Taxes

         Except as otherwise provided for in this Agreement, all taxes and other
duties in connection with the implementation of the Agreement shall be the
responsibility of each party in accordance with the prevailing laws and
regulations.

16.14    Amendments

         No modification or restatement of or amendment or supplement to this
Agreement shall be valid or binding unless set forth in writing and duly
executed by all parties hereto. For the avoidance of doubt no modification or
restatement of or amendment or supplement to Section 1(o), Section 1(aj),
Section 2.3, Section 3.3, Article 6, Article 7, Section 8.5, Section 8.7 and
Attachment C will be permitted during the KSO Period.

ARTICLE 17 - MISCELLANEOUS

17.1     Mutual Waivers

         TELKOM will enter into mutual waivers, substantially in the form of
Attachments G and H hereto, with each of the Investor and the former
shareholders of the Investor, pursuant to which TELKOM will release such parties
and such parties will release TELKOM from all liabilities arising under the
Original KSO Agreement and the Original KSO Construction Agreement for the
period ending on the Effective Date. It is intended that TELKOM will enter into
the mutual waivers with the Investor and the former shareholders of the
Investor, respectively, prior to the Effective Date, although the mutual waivers
will only

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take effect upon the Effective Date.

17.2     Accounts Receivable

         All accounts receivable owing to the Investor under the Original KSO
Agreement on the Effective Date shall be paid by DIVRE IV to the Investor in
three equal installments on the 7th day of each of the next three calendar
months following the month on which the Effective Date occurs. If a payment date
falls on a day which is not a Business Day, it shall be made on the immediately
following day which is a Business Day.

17.3     KSO Construction Agreement

         With effect on the Effective Date, the Original KSO Construction
Agreement is hereby terminated and shall be deemed null and void.

17.4     Loss of Exclusivity

         The Investor hereby transfers to TELKOM all its right, title and
interest in, and any claim it may have with respect to, payments or compensation
to which the Investor is entitled as a result of the loss of the Investor's
exclusivity under its License.

17.5     Undertaking to Indosat

         TELKOM acknowledges that the Investor's shareholders have provided an
undertaking to PT. Indonesian Satellite Corporation Tbk ("Indosat"), pursuant to
which the shareholders have agreed not to, and have agreed to cause the Investor
not to, take any action to prohibit, deny or handicap the provision by Indosat
directly or indirectly of telecommunications networks or services in the
Territory or the roll out by

                                       43

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Indosat of a telecommunications network in the Territory and not to exercise any
rights the Investor may have under the License or the Agreement to prevent the
provision either directly or indirectly of such networks or services by Indosat
or the rollout of such network, and TELKOM agrees that it will not attempt to
prevent the Investor's shareholders or the Investor from performing such
undertaking.

17.6     Prohibition on Payments in U.S. Dollars

         If DIVRE IV or TELKOM shall be prevented by prevailing law or
regulation from making a payment required by this Agreement to be made in U.S.
Dollars, DIVRE IV or TELKOM, as relevant, shall make the payment in Rupiah, for
this purpose converting the U.S. Dollars into Rupiah by multiplying the U.S.
Dollar amount of the payment times the midpoint between the buying and selling
rates of Bank Indonesia for the Rupiah against the U.S. Dollar on the payment
date.

17.7     License

         TELKOM and the Investor set forth the following mutual agreements and
understandings with respect to the License:

         (a)      TELKOM and the Investor acknowledge that it is TELKOM's
intention to seek the approval of the Minister to operate the KSO during the KSO
Period under TELKOM's national license and to pay a license fee thereunder, and
for no License Fee to be payable with respect to the License, notwithstanding
anything to the contrary herein;

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         (b)      during the KSO Period, the Investor shall not utilize the
License or any of its rights thereunder to carry on any telecommunications
business except as expressly contemplated under this Agreement;

         (c)      the Investor shall assist TELKOM upon TELKOM's request in
providing information and negotiating with the Minister and any other relevant
departments and agencies to achieve a mutually agreeable understanding with the
Minister and such other departments and agencies in relation to TELKOM's
intentions with respect to the licensing matter as reflected in this section;
and

         (d)      TELKOM undertakes that pending approval of the Minister to
operate the KSO during the KSO Period under TELKOM's national license, TELKOM
shall cause DIVRE IV to pay the License Fee to the Department as provided in
this Agreement.

IN WITNESS WHEREOF the parties have signed this Agreement under the hand of
their duly authorized representatives:

PERUSAHAAN PERSEROAN                        PT MITRA GLOBAL
(PERSERO) PT TELEKOMUNIKASI                 TELEKOMUNIKASI INDONESIA
INDONESIA TBK
                                            [STAMPED]

Oleh /s/ Kristiono                          Oleh  /s/ Sandiaga Salahuddin Uno
     ---------------------------                  ---------------------------
Nama    : Kristiono                         Nama    : Sandiaga Salahuddin Uno
Jabatan : Direktur Utama                    Jabatan : Direktur Utama

[STAMP OF METERAI TEMPEL]

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