Document:

EXHIBIT 10.6

                                                      June 19, 2006

Tompkins Capital Group
488 Madison Avenue,
New York, New York 10022
Attention: Mr. Mark N. Tompkins

Mr. Tompkins:

      Reference is made to that certain Term Sheet (the "Term Sheet"), dated May
8, 2006, relating to a proposed business combination between Alternative Energy
Sources, Inc., a Delaware corporation (the "Company") and Beemer Energy, Inc., a
Delaware corporation ("BEEMER") and a related private placement financing (the
"Transactions"). In connection with the Transactions, the Company and BEEMER
also entered into that certain Merger Agreement (the "Merger Agreement"), dated
as of June 19, 2006, pursuant to which BEEMER stockholders received common
stock, par value $0.0001 per share, of the Company (the "Common Stock") in
consideration for shares of BEEMER held by them at the effective time of the
merger. In consideration of the Company and BEEMER entering into the
Transaction, and for Tompkins Capital Group to facilitate the Transactions and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the undersigned hereby agrees as follows:

1.    The undersigned hereby covenants and agrees, except as provided herein,
not to (1) offer, sell, contract to sell or otherwise dispose of and (2)
transfer title to (a "Prohibited Sale") any of the shares (the "Acquired
Shares") of Common Stock acquired by the undersigned pursuant to or in
connection with the Merger Agreement, during the period commencing on the
"Closing Date" (as that term is defined in the Term Sheet) and ending on the
24-month anniversary of the Closing Date (the "Lockup Period"), without the
prior written consent of the Company and Tompkins Capital Group (which consent
shall not be unreasonably withheld). Notwithstanding the foregoing, the
undersigned shall be permitted from time to time during the Lockup Period,
without the prior written consent of the Company or Tompkins Capital Group, as
applicable, (i) to acquire shares of Common Stock pursuant to the undersigned's
participation in the Company's stock option plan, or (ii) to transfer all or any
part of the Acquired Shares to any family member, for estate planning purposes
or to an affiliate thereof (as such term is defined in Rule 405 under the
Securities Exchange Act of 1934, as amended), provided that such transferee
agrees with the Company and Tompkins Capital Group to be bound hereby, and in
any transaction in which holders of the Common Stock of the Company participate
or have the opportunity to participate pro rata, including, without limitation,
a merger, consolidation or binding share exchange involving the Company, a
disposition of the Common Stock in connection with the exercise of any rights,
warrants or other securities distributed to the Company's stockholders, or a
tender or exchange offer for the Common Stock, and no transaction contemplated
by the foregoing clauses (i) or (ii) shall be deemed a Prohibited Sale for
purposes of this Letter Agreement.

<PAGE>

2.    This Letter Agreement shall be governed by and construed in accordance
with the laws of the State of New York, without regard to its conflict of laws
principles.

3.    This Letter Agreement will become a binding agreement among the
undersigned as of the Closing Date. This Letter Agreement (and the agreements
reflected herein) may be terminated by the mutual agreement of the Company,
Tompkins Capital Group and the undersigned, and if not sooner terminated, will
terminate upon the expiration date of the Lockup Period. This Letter Agreement
may be duly executed by facsimile and in any number of counterparts, each of
which shall be deemed an original, and all of which together shall be deemed to
constitute one and the same instrument. Signature pages from separate identical
counterparts may be combined with the same effect as if the parties signing such
signature page had signed the same counterpart. This Letter Agreement may be
modified or waived only by a separate writing signed by each of the parties
hereto expressly so modifying or waiving such agreement.

Very truly yours,

                                                  Signature:__________________
                                                   Print Name:________________

Address: ______________________________________
Number of shares of Common Stock owned: __________
Certificate Numbers: _____________________________<PAGE>
                                                                    EXHIBIT 4.45

                                 SUPPLY CONTRACT
                                       FOR
                 THE PROCUREMENT AND INSTALLATION OF RING JASUKA
                                    BACKBONE
                                     BETWEEN
                        PT TELEKOMUNIKASI INDONESIA, TBK.
                                       AND
                            NEC -- SIEMENS CONSORTIUM

                      No.: K.TEL.     /HK.910/UTA-00/2005

This Contract is made and entered into this 10th of June 2005, by and between
the Parties:

I.       PT TELEKOMUNIKASI INDONESIA, TBK, a telecommunication services and
         network provider having its domicile at Jalan Japati No. 1,
         Bandung-40133, Indonesia, in this this Contract duly represented by
         KRISTIONO, in his capacity as President Director, hereinafter in this
         Contract referred to as TELKOM; and

II.      NEC-SIEMENS CONSORTIUM, a consortium establised under Consortium
         Agreement dated 25 February 2005, which has been legalized by Leolin
         Jayayanti, SH, Notary Public in Jakarta under legislation
         no.12/Leg/II/2005 dated 25 February 2005, consisted of NEC CORPORATION,
         a company established under the laws of Japan, domiciled at 7-1, Shiba
         5-chome Minato-ku, Tokyo 108-8001, Japan, as a leader and PT SIEMENS
         INDONESIA, a company established under the laws of Republic of
         Indonesia, domiciled at Siemens Business Park, Building B 1st Floor,
         Jalan MT. Haryono Kav. 58-60, Jakarta, as a member, hereinafter
         referred to as CONTRACTOR, in this Contract duly represented by:

         AKIHITO OHTAKE, in his capacity as Senior Vice President NEC
         CORPORATION, and

         MARKUS STROHMEIER, in his capacity as Head of COM Fixed Network PT
         SIEMENS INDONESIA and HERBERT FETTIG, in his capacity as General
         Manager of Finance and Business Administration PT SIEMENS INDONESIA,

                                                                               1
<PAGE>

TELKOM and CONTRACTOR are individually referred to as "PARTY" and collectively
as the "PARTIES".

                                   WITNESSETH

a.       whereas TELKOM through its letter Ref.No.TEL.54/LG.240/DLD-51/2005
         dated 3 February 2005 has sold Request for Proposal (RfP) Document to
         the bidders/ CONTRACTOR;

b.       whereas to respond the TELKOM's letter as mentioned in point a. above,
         the CONTRACTOR through its letter dated 3 March, 2005, has submitted
         the bid to TELKOM cq. Tender Committee;

c.       whereas TELKOM through its letter Ref. No.: TEL.257/TK.220/DLD-51/2005
         dated 10 May 2005, has appointed NEC-SIEMENS Consortium as a CONTRACTOR
         to execution the Procurement and Implementation of Ring JASUKA Backbone
         which is amounting to USD.42,713,568 and Rp.154.220.640.002 (equivalent
         to total Rp.559.145.264.642 excluding 10% VAT with exchange rate is
         USD.1 = Rp 9,480 dated April 8, 2005);

d.       whereas CONTRACTOR through its commitment letter dated 11 May 2005
         hereby commit and agree to carry out the Works expressed its consent to
         the price agreed and ability to execute the Works as specified in this
         Contract in accordance with point c. mentioned above;

e.       whereas between TELKOM and CONTRACTOR has been held the contract
         discussions and negotiation in accordance with Minutes of Meetings on
         12-20 May 2005;

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

                                                                               2
<PAGE>

                                    CHAPTER I
                          GENERAL TERMS AND CONDITIONS

                                    ARTICLE 1
                                   DEFINITIONS

a.       "CONTRACT" shall mean the agrement entered into between TELKOM and
         CONTRACTOR, as recorded in the Contract form signed by the Parties
         including all attachments thereto and amendment documents incorporated
         by reference therein;

b.       "RING JASUKA BACKBONE" means the optical cable transmission system
         under this Contract which consist of:

         -        RING-I (Link JAKARTA --TANJUNG PANDAN -- PONTIANAK -- BATAM --
                  DUMAI -- PEKANBARU -- PALEMBANG -- JAKARTA).

         -        RING-II (Link MEDAN -- PADANG -- PEKANBARU -- MEDAN).

c.       "PROJECT" means the Works to be undertaken by CONTRACTOR for the
         procurement and installation of Ring JASUKA Backbone, to be carried out
         on single responsibility basis.

d.       "TELKOM" means PT. (PERSERO) TELEKOMUNIKASI INDONESIA TBK, the public
         state owned company of Indonesia for public telecommunication services,
         acting as the owner of the Project.

e.       "CONTRACTOR" means a contractor who has signed the Contract with TELKOM
         for the implementation of the Project on single responsibility basis.

f.       "SUB-CONTRACTOR" means any party or parties approved by TELKOM having a
         direct contract or contracts with CONTRACTOR for the performance of any
         part or parts of the Works to be executed under the Contract.

g.       "TURNKEY BASIS" means the Scope of Work where upon the effective date
         of this Contract, CONTRACTOR shall be fully and solely responsible for
         the survey, design, development, manufacture, delivery, supply,
         installation, integration and commissioning

                                                                               3
<PAGE>

         of the System, and the remedying of any defects, so as to make the
         System and Sub-system ready for service and the CONTRACTOR shall also
         do everything necessary as reasonably may be inferred from this
         Contract as being required of CONTRACTOR to perform all of its
         obligations under this Contract.

h.       "WORKS" means the objective of the Contract, i.e., supply of Goods,
         survey, design, manufacturing, transportation, installation/
         construction, permits, testing, commissioning, integrating, complete
         and operational System as required, documentation, training and any
         other associated services or activities whatsoever for the execution of
         the Project under the Contract by the CONTRACTOR up to the last Final
         Acceptance Certificate.

i.       "GOODS" means and include all kinds of machinery, apparatus, materials,
         articles, spare parts, necessary tools and test equipment, relevant
         drawings, operation manuals, and handbooks which is required by
         CONTRACTOR to fulfill CONTRACTOR's obligation under this Contract.

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

k.       "REQUEST FOR PROPOSAL" means the documents i.e. "General Conditions",
         "Technical Specifications" and any additional notice which was given to
         bidder/CONTRACTOR.

l.       "CONTRACT PRICE" means the price including any applicable Value Added
         Tax to the CONTRACTOR for completion of the Works under this Contract.

m.       "TELKOM'S PROJECT MANAGER" means TELKOM's staff duly authorized by
         TELKOM to act as their representative for the execution of the Project.

n.       "CONTRACTOR'S PROJECT MANAGER" means CONTRACTOR's person duly
         authorized by CONTRACTOR to act as their

                                                                               4
<PAGE>

         representative for the execution of the Project.

o.       "DEFAULT" means any of negligent act or failure in the implementation
         of the Project in respect of the Contract.

p.       "SYSTEM" means integration of two or more of Sub-system forming ring
         configuration including network management systems.

q.       "SUB-SYSTEM" means physical interconnection between Sites which is a
         part of the System and ready for commercial operation by TELKOM. The
         System consists of:

<TABLE>
<CAPTION>

             SUBSYSTEM                                  AREA
             ---------                                  ----

<S>                                             <C>
      Sub-system-1 Ring #1 (SS # 1-1)           Segment JKT - TJP.

      Sub-system-2 Ring #1 (SS # 1-2)           Segment PTK - BTM.

      Sub-system-3 Ring #1 (SS # 1-3)           Segment DMI - PBR -- JKT

      Sub-system-1 Ring #2 (SS # 2-1)           Segment MDN - BLG.

      Sub-system-2 Ring #2 (SS # 2-2)           Segment BLG - KNP.

      Sub-system-3 Ring #2 (SS # 2-3)           Segment KNP -- PD

      Sub-system-4 Ring #2 (SS # 2-4)           Segment PD - PBR -- MDN
</TABLE>

r.       "TECHNICAL SPECIFICATION" shall mean technical specifications as mutual
         agreed by both Parties and as mentioned in the Attachment-7 of this
         Contract.

s.       "SITE" means a place or places to which the Goods are to be delivered
         or where the Works are to be performed by the CONTRACTOR.

t.       "INTEGRATION" shall mean the integration between the System or
         Sub-system provided by CONTRACTOR and/or TELKOM's system in accordance
         with the Technical Specification.

u.       "COMMISSIONING" means activities that shall be done by the CONTRACTOR
         in preparation of the Acceptance Test.

                                                                               5
<PAGE>

v.       "ACCEPTANCE TEST (AT)" shall mean physical and electrical charateristic
         checking of the installation and materials, and testing of Sub-system
         and System to test the proper functionality of each Site as mentioned
         in Article 27 of this Contract of the Goods installed;

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

x.       "ACCEPTANCE TEST CERTIFICATE" (ATC hereinafter referred to as BAUT)
         means an official written statement signed by acceptance test team
         assigned by both Parties, indicating that the Works have been
         performed, completed, tested satisfactorily and can be operated
         commercially in accordance with the Contract. BAUT shall be released
         for each Sub-System;

y.       "GOODS ARRIVAL CERTIFICATE" means an official written statement issued
         by TELKOM's Project Manager indicating that all of the relevant Goods
         have arrived at a Site.

z.       "SYSTEM OR SUB-SYSTEM ACCEPTANCE CERTIFICATE (SAC)/FIRST HAND-OVER
         CERTIFICATE (BAST-I)" means an official written statement issued by
         TELKOM's Project Manager indicating that the Works have been performed,
         completed and tested satisfactorily, and handed over from CONTRACTOR to
         and accepted by TELKOM in accordance with the Contract and starting of
         warranty period;

aa.      "FINAL ACCEPTANCE CERTIFICATE OR SECOND HAND-OVER CERTIFICATE (BAST-2)"
         means an official written statement issued by TELKOM's Project Manager
         indicating that the warranty period of 12 (twelve) months of each
         Sub-system for Land Portion and 5 (five) years of each Sub-system for
         Marine Portion is over and all CONTRACTOR's obligations has been
         fulfilled under this Contract.

bb.      "TRAINING CERTIFICATE" means an official written statement issued by
         TELKOM's Project Manager indicating that the training for TELKOM's
         employees have been

                                                                               6
<PAGE>

         completed by CONTRACTOR.

cc.      "CONSTRUCTION EQUIPMENT" means the equipment, tools and machinery
         including specialized test equipment brought to the Site by the
         CONTRACTOR for the execution of the Contract, but not to be purchased
         by TELKOM.

dd.      "INSPECTOR" means the representative(s) or person(s) duly authorized by
         TELKOM to inpect the Goods and Services under the Contract.

ee.      "EFFECTIVE DATE OF CONTRACT" or "EDC" means the date on which contract
         is signed by TELKOM and the CONTRACTOR in accordance with Article 55.

ff.      "INFORMATION" means information whether written or oral, including but
         not limited to documentation, specifications, reports, data, notes,
         drawings, models, patterns, samples, software, computer outputs,
         designs, inventions whether patent can be obtained or not and know how.

gg.      "MONTHS" and "DAYS" denote Gregorian calendar months and calendar days,
         respectively.

hh.      "BILL OF QUANTITY" or "BOQ" means the bill of quantities as set out in
         Attachment-1.

ii.      "LAND PORTION" means segment other than Marine Portion.

jj.      "MARINE PORTION" means submarine segments between TJP -- JKT in SS #1-1
         and PTK -- BTM in SS#1-2.

                                    ARTICLE 2
                                COUNTRY OF ORIGIN

2.1      All Goods supplied under the Contract shall have their origin in the
         member countries and territories eligible under the rules of the
         Government of Indonesia.

2.2      For the purpose of this Article "origin" means the place where the
         Goods are produced. Goods are produced when a new product is
         commercially recognized as a result of manufacturing, processing of
         substantial and major assembling of components, and is substantially
         different in

                                                                               7
<PAGE>

         basic characteristics or in purpose or utility from its components.

2.3      The origin of the Goods is distinct from the nationality of the
         CONTRACTOR.

                                    ARTICLE 3
                                 SCOPE OF WORKS

3.1      The Scope of this Contract covers the procurement and installation of
         Ring JASUKA Backbone which encompass the Sites at Ring-I and Ring-II
         according to the configurations, Bill of Quantity, capacity plan, Plan
         of Work, and Technical Specification, etc. as set out in this Contract.

3.2      For the purpose of the implementation of the Works, CONTRACTOR shall
         carry out at least the followings:

         a.       Survey, design and engineering;

         b.       Procurement and or manufacturing of equipment, spare part,
                  tools and measuring equipments and its accessories and
                  delivery of the equipment to the Site;

         c.       Implementation, integration of System to existing system;

         d.       Commissioning and testing;

         e.       Warranty and long term support;

         f.       All risk insurance

         g.       Training.

         h.       Documentation.

3.3      The Scope of Works shall be adjusted and executed under the amendment
         pursuant to Articles 37 and 38 of this Contract.

3.4      This Contract is covering various steps involved in the procurement and
         installation of Ring JASUKA Backbone on a Turnkey basis.

                                                                               8
<PAGE>

                                    ARTICLE 4
                                    STANDARDS

The Goods supplied under this Contract shall conform to Attachement-7 (Technical
Specification). When no standard is detailed therein, then the latest standards
ITU-T at the time of the Contract shall be applied. In case, both of standards
not obtained than the country of origin standards which are issued by the
relevant institution shall apply.

                                    ARTICLE 5
                    USE OF CONTRACT DOCUMENTS AND INFORMATION

5.1      The CONTRACTOR shall not, without TELKOM's prior written consent,
         disclose the Contract, or any provision thereof, or any specification,
         plan, drawing, pattern, list, schedule, sample or information furnished
         by or on behalf of TELKOM in connection therewith, to any person other
         than a person employed by the CONTRACTOR in the performance of the
         Contract. Disclosure to any such employed person shall be made in
         confidence and shall extend only so far as may be necessary for the
         purpose of performance of the Works.

5.2      The CONTRACTOR shall not, without TELKOM's prior written consent, make
         use of any document or information enumerated in Article 5.1 except for
         purpose of performing the Contract.

5.3      Any documents, mentioned in Article 5.1 other than the Contract itself,
         shall remain the property of TELKOM and shall be returned (and all
         copies) by the CONTRACTOR to TELKOM on completion of the Contract if so
         required by TELKOM.

                                    ARTICLE 6
                                  PATENT RIGHTS

6.1      The CONTRACTOR shall indemnify TELKOM against all third party claims of
         infringement of patent, trademark, copyrights or industrial design
         rights arising from the use of the Goods, the performance of the Works
         or the operation of the System, or any part thereof in Indonesia.

6.2      The CONTRACTOR shall only have the obligations as set out in this
         Article 6, if

                                       9
<PAGE>

         TELKOM: a) gives CONTRACTOR prompt written notice of any alleged or
         actual claims, b) allows CONTRACTOR on its request to directly or
         indirectly control the defense and/or settlement of such claim, c) does
         not consent to any judgment or decree or does any other act in
         compromise of any claim without first obtaining CONTRACTOR's written
         consent, and d) provides CONTRACTOR all reasonable cooperation and
         information as may be requested by CONTRACTOR.

6.3      Furthermore, such indemnity shall not cover such infringement or claim
         arising from:

         1)       The CONTRACTOR's adherence to TELKOM's direction to use
                  materials or parts of TELKOM's selection; or

         2)       Such material or parts furnished to the CONTRACTOR by TELKOM,
                  other than in each case, a) items of the CONTRACTOR's design
                  or selection or b) the same as any of the CONTRACTOR's
                  commercial merchandise or in processes or c) machines of the
                  CONTRACTOR's design or selection used in the manufacture of
                  such standard products or parts; or

         3)       Use of the Goods other than for the purposes indicated in, or
                  reasonably to be inferred from, this Contract or in
                  conjunction with other products; or

         4)       Modification of the Goods by TELKOM, without prior expressed
                  written approval by CONTRACTOR.

                                                                              10
<PAGE>

                                    ARTICLE 7
                         PERFORMANCE AND WARRANTY BONDS

7.1.     The performance bond shall be established in both Rupiah and US Dollar
         currency and shall be in surety bond or bank guarantee issued by
         insurance company or bank according to TELKOM requirement (Bank
         Mandiri, BNI 46, Bank Rakyat Indonesia Bank BUKOPIN, Bank Mega, Ban
         NISP, Bank BCA, Bank Niaga, Citibank, Standard Chartered Bank, ABN
         AMRO, HSBC, Asurandi JASINDO, Asuransi Kredit Indonesia, Asuransi
         Eksport Indonesia) amounting of 5% (five percent) of the Contract
         Price.

7.2.     The performance bond shall be submitted by CONTRACTOR to TELKOM within
         7 (seven) calendar days before signing of this Contract, address to:

         PT Telekomunikasi Indonesia, Tbk.
         Att. Senior Manager of Finance
         TELKOM LONG DISTANCE DIVISION
         Jalan Japati No. 1, 2nd Floor
         Bandung 40133

7.3.     The performance bond may be reduced accordingly upon the submission of
         the warranty bond by the CONTRACTOR after the date of System/
         Sub-system Acceptance Certificate issued by TELKOM's Project Manager
         pursuant to Article 28. The performance bond shall be released by
         TELKOM to CONTRACTOR after the issuance of BAST-I of the last
         Sub-system.

7.4.     In the event CONTRACTOR fails to accomplish the Works or its parts in
         accordance with the terms and conditions of this Contract, due to gross
         negligence and/or willful misconduct of CONTRACTOR, then CONTRACTOR and
         TELKOM shall meet to review the situation. If the CONTRACTOR failed to
         make good such default, then TELKOM is entitled to forfeit the
         performance bond with prior written consent from CONTRACTOR which shall
         become property of TELKOM.

                                                                              11
<PAGE>

7.5.     The release of performance bond as described in Article 7.4 above, no
         waive of CONTRACTOR's obligation as described in Articles 22.1 of this
         Contract.

7.6.     The warranty bond shall be in form of surety bond or bank guarantee
         issued by insurance company or bank according to TELKOM's requirement
         mentioned in Article 7.1 amounting of 5% (five percent) of the
         Contract Price of each Sub-system in the related Ring-I and Ring-II.

         The warranty bond for Marine Portion shall be valid for five (5) years
         from the date of related BAST-I of each Sub-system of Ring-I and that
         for Land Portion shall be valid for twelve (12) months from the date of
         related BAST-I of each Sub-system of Ring-I and Ring-II.

7.7.     The CONTRACTOR shall submit to TELKOM the warranty bond together with
         the invoice of each Sub-system at the related Ring-I and Ring-II.

                                    ARTICLE 8
                           AUTHORIZED REPRESENTATIVES

8.1      TELKOM will appoint a project manager who shall be duly authorized to
         act on their behalf for the execution of the Project.

8.2      The CONTRACTOR, immediately after the signing of the Contract, shall
         duly appoint his Project Manager and notify TELKOM for approval
         thereof. The curriculum vitae of the CONTRACTOR's Project Manager shall
         be submitted to TELKOM together with the notification.

8.3      The CONTRACTOR's Project Manager shall be duly authorized to act on
         behalf of the CONTRACTOR with respect to any and all matters relating
         to the performance of the Contract, and he shall give full technical
         information to TELKOM. The CONTRACTOR's Project Manager shall be
         stationed in Indonesia during the period commencing not later than
         thirty (30) days after the Effective Date of the Contract and
         terminating after the completion of the CONTRACTOR's obligations under
         the Contract.

                                                                              12
<PAGE>

                                   ARTICLE 9
                          CONTRACTOR'S RESPONSIBILITY

9.1      The CONTRACTOR shall be fully responsible to conduct desktop study,
         permits, cable route survey, design, develop, engineering, manufacture,
         supply, install, training and test the System in accordance with all
         the terms and conditions contained in the Contract including any
         integration of the System and for ensuring that the System is fully
         compliant with the Contract and the CONTRACTOR shall not claim any
         additional payment nor be relieved from any obligation imposed on it by
         this Contract on grounds of any information supplied by TELKOM on any
         matter whatsoever related to this Contract. In the event the Goods are
         to interoperate with third party's equipment, TELKOM shall be obligated
         to provide the necessary interfaces of the respective third party's
         equipment.

9.2      The CONTRACTOR shall be deemed to have reviewed the Works as a whole
         and in detail and to have fully satisfied itself of the feasibility and
         practicability thereof.

9.3      In addition to the requirements for the provision of technical
         information described in the Contract, the CONTRACTOR shall, upon
         request, provide the TELKOM with such additional technical information
         in connection with the Contract as the TELKOM may reasonably require.

9.4      In case any damage, loss or injury happens to the Goods and Services,
         or to any part thereof, from any cause whatsoever, except the "excepted
         risks" as defined in Article 9.6 while the CONTRACTOR shall be
         responsible for the care thereof, the CONTRACTOR shall, at his own
         cost, repair and make good the same, so that the Works shall be in good
         order and condition and in conformity in every respect with the
         requirements of the Contract.

9.5      In the event of any damage, loss or injury happening from any of the
         excepted risks, the CONTRACTOR shall, if and to the

                                                                              13
<PAGE>

         extent required by TELKOM and subject to Article 46, repair and make
         good the same as aforesaid at the cost of each party. The CONTRACTOR
         shall also be liable for any damage to the Works occasioned by him in
         the course of any operation carried out by him for the purpose of
         completing any outstanding Works or complying with his obligations
         according to time completion under Article 31.

9.6      The "excepted risks" are war, hostilities (whether war be declared or
         not), invasion, act of foreign enemies, rebellion, revolution,
         insurrection or military or usurped power, civil war, or unless solely
         restricted to employees of the CONTRACTOR or of his Sub-contractors and
         arising from the conduct of the Works, riot, commotion or disorder, or
         use or occupation by TELKOM of any part of the Works, or ionizing
         radiations or contamination by radio activity from any nuclear fuel or
         from any nuclear waste from the combustion of nuclear fuel,
         radio-active toxic explosive, or other hazardous properties of any
         explosive, nuclear assembly or nuclear component thereof, pressure
         waves caused by aircraft or other aerial devices traveling at sonic or
         supersonic speeds, or any such operation of the forces of nature as an
         experienced CONTRACTOR could not foresee or reasonably make provision
         for or insure against all the excepted risks.

9.7      The CONTRACTOR shall not take advantage of any apparent error or
         omission in the Contract documents. In the event CONTRACTOR discovers
         any error or discrepancy, CONTRACTOR shall immediately call upon TELKOM
         for their interpretation, and such error or discrepancy shall be
         corrected upon the mutual consent between TELKOM and the CONTRACTOR.

9.8      The CONTRACTOR shall pay due attention to the Works and shall cooperate
         with TELEKOM's Project Manager, TELKOM's staffs, and further with other
         CONTRACTORs having connection with the execution of the Project.

9.9      The CONTRACTOR shall conform with

                                                                              14
<PAGE>

         Attachment-2 (Plan of Work).

9.10     The CONTRACTOR shall attend at the CONTRACTOR's own expenses such
         meetings with the TELKOM representatives at such times as may be
         required by the TELKOM.

                                   ARTICLE 10
                            RESPONSIBILITY OF TELKOM

10.1     The duties of TELKOM's Project Manager will supervise the Works and
         examine workmanship of CONTRACTOR employed in the execution of the
         Works.

10.2     Any written instruction or approval given by TELKOM's Project Manager
         to the CONTRACTOR within his capacity shall refer to the Contract and
         bind the CONTRACTOR as if it had been given by TELKOM.

                                   ARTICLE 11
                                     PACKING

11.1     The CONTRACTOR shall provide such packing of the Goods as is required
         to prevent their damage or deterioration during transit to their final
         destination as indicated in the Contract. The packing shall be
         sufficient to withstand, without limitation, rough handling during
         transit, exposure to extreme temperatures, briny environment, and
         condensation/precipitation during transit and open storage. Packing
         case size and weights shall take into consideration, where appropriate,
         the remoteness of the Goods final destination and the absence of heavy
         handling facilities at all points in transit.

11.2     Any case, crate, bundle, and whatever method of packing the Goods for
         shipping and/or delivery, shall bear the following identification
         legibly and indelibly marked on at least 2 (two) external sides or
         places:

         PT. (Persero) Telekomunikasi Indonesia, Tbk
         Att.: TELKOM Long Distance Division

         Procurement and Installation of Ring JASUKA Backbone

                                                                              15
<PAGE>

             CONTRACT NO.         :
             LICENSE NO.          :
             SITE                 :
             CASE NO.             : (A/B/C) *)
             PORT OF DESTINATION  :
             INVOICE NO. & DATE   :
             NET WEIGHT           :
             GROSS WEIGHT         :
             VOLUME               :
             (LENGTH/WIDTH/HEIGHT)

         *)  A: Sequence No. of cases
             B: Total No. of cases in shipment
             C: Sequence No. of shipment
         The detailed address shall be given to CONTRACTOR.

11.3     The CONTRACTOR shall comply with any subsequent instruction given or
         alteration required by TELKOM pertaining to packing, marking, and
         documentation inside and outside of any pieces of shipment or delivery.

                                   ARTICLE 12
                             DELIVERY AND DOCUMENTS

12.1     Delivery of the Goods shall be made by the CONTRACTOR in accordance
         with the Contract.

12.2     All physical deliveries covered by this Project shall be accompanied by
         a consignment note, which includes:

         a. Name and registered office of CONTRACTOR;

         b. Contract number;

         c. Date of shipment and delivery;

         d. Country of Origin;

         e. Quantities included.

12.3     TELKOM shall visually inspect the Goods on delivery to the installation
         Site based on a copy of the Goods shipping documents and TELKOM's
         Project Manager shall promptly issue a Goods Delivery Certificate if
         there is no obvious physical damage to the Goods and the quantity of
         Goods delivered is correct according to the supporting documentation
         provided.

12.4     For the purpose of the Contract, "FOB", "CIF" and "DDP" used to
         describe the obligations of the Parties shall have the meanings
         assigned to them in the current edition of the International Rules

                                                                              16
<PAGE>

         for the Interpretation of the Trade Terms published by the
         International Chamber of Commerce, Paris, and commonly referred to as
         INCOTERMS 2000.

                                   ARTICLE 13
                       TRANSPORTATION AND STORAGE OF GOODS

13.1     Partial shipment is acceptable, but transshipment is not allowed. The
         word "transshipment" assigned herein means that the Goods shipped on
         board of the ocean vessel at the port of origin are transferred to
         another ship at a port of the country of origin or a port in any third
         country before they reach the port of the country of final destination.
         The CONTRACTOR is encouraged, to the extent practicable and reasonable,
         to utilize Indonesian Flag carrier vessels. In the event transshipment
         is urgently required by CONTRACTOR, then approval for transshipment
         shall be obtained by CONTRACTOR from TELKOM prior to transhipment.

13.2     The Goods delivered to Site shall be stored in the CONTRACTOR's storage
         area until actually required for incorporation of the Works. The
         CONTRACTOR shall be responsible for the safety of the Goods during
         storage. The CONTRACTOR shall be aware of the high humidity and its
         effects to Goods subject to corrosion in storage areas in Indonesia.

13.3     The CONTRACTOR shall be responsible for the handling and safe movement
         of the Goods during off-loading from and loading into transport, until
         the completion of the Contract.

13.4     The CONTRACTOR shall be responsible for the payment of all expenses for
         clearing the Goods through the port of arrival, for transportation to
         Site and storage.

                                                                              17
<PAGE>

                                   ARTICLE 14
                                   INSURANCE

14.1     Without limiting its obligations and responsibilities, the CONTRACTOR
         shall, prior to the commencement of any Work, and at its own expense,
         provide evidence within seven (7) calendar days from the signing of the
         Contract, insurance to cover its liabilities throughout the Contract
         and in the joint name of TELKOM and the CONTRACTOR as the insured:

         a.       (i) the Works and any work in progress of every kind required
                  for the execution, testing and completion of the Works
                  including, but not limited to, the completed item to the full
                  value of such Works and any work in progress executed from
                  time to time,

                  (ii) all appliances, instruments or things of whatsoever
                  nature required in or pertaining to the execution, testing and
                  completion of the Works, constructional plant, the materials
                  and other things brought on to the Site by the CONTRACTOR to
                  the full value of such constructional plant, materials and
                  other things, against all losses or damages from whatever
                  cause in respect of all risks including, but not limited to,
                  marine cargo (Note 1), sea bed (Note 2) and war risk (Note 3)
                  arising for which it is responsible under the terms of the
                  Contract and in such manner that TELKOM and the CONTRACTOR are
                  covered during the period of construction of the Works;

         b.       against any damage, loss or injury which may occur to any
                  property (including that of TELKOM) or to any person
                  (including any employee of TELKOM) as a result of the
                  execution of the Works or temporary work;

         c.       against any damage or compensation payable under statute or at
                  law in respect or in consequence of any accident or injury to
                  any person in the employment of the CONTRACTOR or any
                  Sub-contractor. The CONTRACTOR shall indemnify and keep
                  indemnified TELKOM against all such damages, compensation,
                  claims, demands, proceedings, costs, charges and

                                                                              18
<PAGE>

                  expenses, whatsoever in respect thereof at its own expenses;

         d.       a general liability policy, sufficient to cover its liability
                  under the Contract until the end of the warranty period or any
                  extension thereto.

         The total prices contained in total amount of Contract shall include
         any premium amounts paid or to be paid by the CONTRACTOR for the
         insurance coverage hereinabove stated.

         Note 1 Marine cargo or equivalent coverage is required to protect
                against all risks of physical loss or damage to the cable,
                repeaters, terminal station equipment and other equipment to be
                included in the System (other than war risks) beginning with the
                date when each such equipment is ready for shipping and ending
                when the cable and repeaters are placed over side the cable
                laying vessel and when the terminal station equipment is
                delivered to the terminal stations.

         Note 2 Sea bed or equivalent coverage is required to protect against
                all risks of physical loss or damage to the equipment described
                in Note 1 above (other than war risks) from the time coverage
                under Note 1 above ends until the issuance of the Certificate of
                System/Sub-system Acceptance.

         Note 3 War risks or equivalent coverage is required to protect
                against damage to, seizure by and/or destruction of the
                System/Sub-system by means of war, piracy, takings at sea, other
                warlike operations and "excepted risks" as stated in Article 9.6
                until the issuance of the System/Sub-system Acceptance
                Certificate.

14.2     Upon the issuance of each policy relative to such insurance and not
         later than fifteen (15) calendar days prior to each renewal thereof,
         the CONTRACTOR shall furnish TELKOM with evidence acceptable to TELKOM

                                                                              19
<PAGE>

         including but not limited to a copy of the insurance policy and
         insurance certificate, evidence that the relevant premiums have been
         paid and that the said policy is and will continue to be in full force,
         and an undertaking letter from the insurance company that the
         provisions included above in Article 14.1 are in effect.

14.3     For all insurance to be effected, the CONTRACTOR is encouraged, to the
         extent practicable and reasonable, to use an Indonesian government
         insurance company.

14.4     The insurance shall be effected, wherever applicable, in such a manner
         that TELKOM and the CONTRACTOR are covered :

         a.       for the period specified in Article 31 of this Contract.

         b.       during the warranty period for any loss or damage arising from
                  a cause occurring prior to the commencement of the warranty
                  period, and

         c.       for any loss or damage occasioned by the CONTRACTOR in the
                  course of any operation carried out by him for the purpose of
                  complying with his obligations under Article 29.

14.5     If the CONTRACTOR shall fail to effect and keep in force the insurance
         specified herein, TELKOM may effect and keep in force any such
         insurance and pay such premium or premiums as may be necessary and from
         time to time deduct the amount so paid by TELKOM from any money due or
         which may become due to the CONTRACTOR, or recover the same as a debt
         due from the CONTRACTOR. The CONTRACTOR shall be liable to TELKOM for
         the full consequences of his failure to insure under this Contract.

14.6     The CONTRACTOR shall furnish TELKOM with a copy of any insurance policy
         to be effected under the Contract upon TELKOM's request. The CONTRACTOR
         shall further furnish TELKOM with draft copies of his proposed
         contracts of insurance immediately after the receipt of notification of
         award and

                                                                              20
<PAGE>

         formal copies immediately after such insurance come into effect.

14.7     Unless otherwise specifically agreed upon by the Parties, it shall be
         the responsibility of the CONTRACTOR to notify the insurance company,
         and proceed with all claims arising from any damage or loss of the
         Goods and Works covered by the insurance on behalf of and for TELKOM.

14.8     All money received under the insurance policy either by the CONTRACTOR
         or by TELKOM shall be applied towards the replacement or repair of the
         Goods and/or the Works found missing or damaged. The CONTRACTOR shall
         be responsible for replacement or repairing of the items within the
         settlement.

14.9     The CONTRACTOR shall indemnify TELKOM against all claims, losses,
         expenses, etc. arising out of or resulting from any default by the
         CONTRACTOR in complying with the requirements of this Article.

14.10    Marine Insurance.

         Marine Insurance of the Goods shall be effected in the name of
         CONTRACTOR from "warehouse to warehouse" on "All Risks" basis including
         war risks and strike Articles.

14.11    Local Transportation Insurance.

         For Goods supplied from within Indonesia, insurance for local
         transportation shall be effected in the name of CONTRACTOR in a full
         amount of the ex-factory value of the Goods from the place where the
         Goods are shipped to a designated Site.

14.12    CONTRACTOR's All Risks Insurance.

         CONTRACTOR's All Risks Insurance shall be effected prior to
         commencement of the Works in the name of CONTRACTOR to cover all risks
         other than the excepted risks as mentioned in Article 9.6 of during the
         execution of the Works against physical loss of or damage to all Goods
         and Works to the full value until the issued of System Acceptance

                                                                              21
<PAGE>

         Certificate, as security for repairment of the Work.

14.13    Third Party Liability Insurance

         Third party liability insurance shall be effected prior to commencement
         of the Works to insure against the CONTRACTOR's liability for any
         material or physical damage, loss or injury which may occur to any
         property, including that of TELKOM or to any person, including any
         employee of TELKOM, by or arising out of the execution of the Works or
         in the carrying out of the Contract.

14.14    Workmen's Compensation Insurance

         Prior to commencement of the Works, the CONTRACTOR shall effect and
         shall maintain during the period of Contract, Workmen's compensation
         insurance for all personnel employed by him and the people who work
         with CONTRACTOR, in connection with the Works, as security for
         compensation benefits pursuant to the applicable laws of Indonesia
         against the Works related to injury or employer's liability.

                                   ARTICLE 15
                                TRANSFER OF TITLE

15.1     The transfer of title of the System / Sub-system from CONTRACTOR to
         TELKOM shall take place when the System/ Sub-system Acceptance
         Certificate has been issued by TELKOM. The transfer of title shall not
         absolve or release the CONTRACTOR from its obligations and its
         liabilities under the Contract.

15.2     Upon transfer of title of the System / Sub-system to TELKOM, the
         CONTRACTOR warrants that the System / Sub-system is free from valid
         liens, claims, charges, encumbrances and security interests arising by
         and through the CONTRACTOR and/or under its government's rules and
         regulations.

15.3     The transfer of title from CONTRACTOR to TELKOM shall take place when
         SYSTEM / SUB-SYSTEM Acceptance Certificate has been issued by TELKOM
         and commencing the CONTRACTOR's responsibility for the

                                                                              22

<PAGE>

         Warranty obligation as mentioned in Article 29.

15.4     Upon the transfer of title of the System / Sub-system to TELKOM as
         described in Article 15.3, the CONTRACTOR also warrants that the System
         / Sub-system has fulfilled all statutory requirements and permits
         including but not limited to any governmental, non-governmental and
         crossing permits, with respect to the performance of the Works.

                                   ARTICLE 16
                         FAMILIARITY WITH SITE AND WORKS

16.1     The CONTRACTOR shall be deemed to have familiarized himself with the
         nature of Site of the Works, the general and local conditions and
         regulations of Site and all other matters which can in any way affect
         the Works and Time of Completion under the Contract.

16.2     The CONTRACTOR shall be deemed to have satisfied himself at the time of
         Contract as to the correctness and sufficiency of his price stated in
         the price schedule which shall cover all his obligations under the
         Contract for proper performance, completion and maintenance of the
         Works. It is entirely the CONTRACTOR's responsibility for any errors in
         the computation or summation of the price schedule or for any incorrect
         perception of the Scope of Works and for the quality of the
         System/Sub-system to be attained at the completion of the Project.
         TELKOM will not compensate the CONTRACTOR for any financial loss, or
         for any errors discovered after the bid submission or during the
         execution of the Contract.

16.3     The CONTRACTOR shall, by careful examination, satisfy himself in
         respect of all pertinent conditions which may in any manner affect the
         execution of the Works, such as, but not limited to, the nature and
         location of the Works to be performed, the character, quality and
         quantity of the Goods to be delivered, the CONTRACTOR's facilities
         including the construction equipment to be used, labor condition,
         transportation conditions and general and local laws and regulations.
         The

                                                                              23
<PAGE>

         CONTRACTOR will ensure that any allowance for all the foregoing factors
         and all other risks, conditions or other circumstances has been
         included in the Contract Price. No claim shall be considered for extra
         costs or extensions of time due to any difference between the actual
         conditions and those which may have been anticipated by the CONTRACTOR.

                                   ARTICLE 17
                         SITE SURVEY AND DESIGN/DRAWING

17.1     The CONTRACTOR shall at his own expense conduct Site survey both of
         Land and Marine Portion to perform all CONTRACTOR obligations in this
         Project, review the plans furnished by TELKOM and prepare the
         installation designs/ drawings and Bill of Quantity.

17.2     The installation designs/drawings shall be prepared with due
         consideration of economic and quality aspect of the System/Sub-system,
         fully reflecting the Site conditions.

17.3     Survey reports and installation designs/drawings shall be submitted to
         TELKOM for approval, section by section where applicable, within such
         time as specified in the Attachment-7 (Technical Specification).

17.4     TELKOM's approval of survey reports and installation designs/ drawings
         shall not relieve the CONTRACTOR of any of his obligation under the
         Contract.

17.5     If, during the execution of the Works, modification of the CONTRACTOR's
         installation designs / drawings becomes necessary, the CONTRACTOR shall
         notify TELKOM of his finding at the Site and obtain approval for such
         modifications from TELKOM. Any modifications of designs/ drawings shall
         be made without extra costs to TELKOM.

17.6     Except for the CONTRACTOR's own reason, any increase or decrease of the
         Contract Price, occasioned by variation in quantities of the Goods
         installed and the Works performed based on modification of

                                                                              24
<PAGE>

         designs / drawings approved or instructed by TELKOM, shall be equitably
         adjusted as mentioned in Article 37.

17.7     CONTRACTOR shall prepare the detailed design and the installation
         drawings for all the System/Sub-system and facilities on the basis of
         the Technical Specifications.

         Such design and installation drawings shall be submitted to TELKOM's
         Project Manager at least one (1) month after Design Review Meeting.

         TELKOM's Project Manager shall give CONTRACTOR approval for such design
         and installation drawings within fourteen (14) calendar days after the
         submission.

17.8     If TELKOM's Project Manager requires to modify such design and
         installation drawings after approval pursuant to Article 17.7 above,
         CONTRACTOR shall submit to TELKOM's Project Manager modification
         application by clarifying its scope. Such modification can be made only
         when it approved in writing by TELKOM's Project Manager. Both of
         increase or decrease of the Contract Price due to such modification
         shall be followed by the Contract amendment.

                                   ARTICLE 18
                           PERMITS AND AUTHORIZATIONS

18.1     The CONTRACTOR shall be responsible to obtain permits and
         authorizations for both of Land and Marine portion, from the government
         and or the third parties when deemed to be necessary for the execution
         and finishing the Works.

18.2     TELKOM shall assist the CONTRACTOR, sub-contractor(s) and their
         non-Indonesian personnel in obtaining in Indonesia residence/work
         permits by issuing sponsorship letters. For this purpose, list of
         expatriate personnel assigned to Indonesia on a full time basis, shall
         be submitted to TELKOM within 30 (thirty) days prior to their arrival
         in Indonesia. Such list shall include the names of each person,
         passport number, intended assignment and responsibilities, and should
         be accompanied by

                                                                              25
<PAGE>

         curriculum vitae and certificates of graduation (final education).

18.3     TELKOM shall assist the CONTRACTOR in obtaining permits and
         authorizations from the government and municipal authorities for entry
         into occupation and excavation of the property of a third party for the
         execution of the Works therein upon the CONTRACTOR's request.

18.4     At least kind of permits shall be obtained by TELKOM and the CONTRACTOR
         respectively as stated in Attachment-10 (Permit Matrix).

                                   ARTICLE 19
                      PROVISION OF FACILITIES AND LABOR BY
                                   CONTRACTOR

19.1     Unless otherwise specially defined, the CONTRACTOR shall, at his own
         expense, provide Construction Equipment, test equipment, test programs,
         materials, tools, labor, water, drainage, fuel, oil, electricity,
         utilities, transportation, and all other facilities and services, and
         safety measures, as well as any temporary sheds, platforms, offices,
         warehouse, guard posts, and other structures necessary for proper
         execution of the Contract.

19.2     The CONTRACTOR shall be responsible for proper fencing (if necessary),
         guarding, lighting and watching of all Works on Site until the Works
         have been completed and accepted by TELKOM.

19.3     The CONTRACTOR shall also be responsible for the proper provision of
         temporary roadways, and guards, safety signs for the accommodation,
         protection and safety of the owners and occupiers of adjacent
         properties, the public and others.

19.4     The facilities and labor provided by the CONTRACTOR specified in
         Articles 19.1. and 19.2. above shall comply with the Technical
         Specification, and relevant laws, ordinances and regulations in
         Indonesia and shall be subject to the approval of TELKOM.

                                                                              26
<PAGE>

                                   ARTICLE 20
                        COPERATION WITH OTHER CONTRACTORS

20.1     The CONTRACTOR shall conduct his Services so as not to interfere with,
         or hinder, the progress or completion of the works being performed by
         other contractor(s) involved in the execution of this or any other
         project.

20.2     The CONTRACTOR shall cooperate with other contractor(s) concerned with
         Project, and in case of any dispute, the matter shall be referred to
         and settled among TELKOM, the CONTRACTOR and other contractor(s).

20.3     The CONTRACTOR shall, as far as possible, arrange his Works and place
         and dispose of the Goods being used, so as not interfere with the
         installation and/ or the operation of other contractors. The CONTRACTOR
         shall execute the Services in an acceptable manner and coordinate with
         other contractors.

                                   ARTICLE 21
                             PROTECTION OF EXISTING
                            TELECOMMUNICATION SYSTEMS

21.1     During the implementation of Project period, the CONTRACTOR shall pay
         special attention to protect the continuity of the operation of the
         existing telecommunication systems.

21.2     In the event that any damage should occur, due to the execution of the
         Works, the CONTRACTOR shall be responsible for the costs incurred for
         the repairs of such damage. The CONTRACTOR shall not be liable to any
         consequential, incidental or indirect damages. The CONTRACTOR's maximum
         aggregate liability, whether in tort, contract or otherwise, shall be
         limited to one hundred (100) percent of the Contract Price.

21.3     In the event that the CONTRACTOR fails or refuses to incur the costs
         thereof, TELKOM shall, without prejudice to its other remedies under
         the Contract, deduct the cost of such damage from payment to the
         CONTRACTOR.

                                                                              27
<PAGE>

                                   ARTICLE 22
                         DAMAGE TO PERSONS AND PROPERTY

22.1     This Article applies to all claims, losses, expenses and damages for:

         a.       injuries to or death of any persons; and

         b.       damage to property, other than the System;

         which result directly from the activities of the CONTRACTOR, its
         Sub-contractors, or agents in the execution of the Contract.

22.2     The CONTRACTOR shall be liable for all claims, losses, expenses, and
         damages described in Article 22.1 above, and shall indemnify and save
         the TELKOM harmless from all such claims, losses, expenses and damages.

22.3     TELKOM shall :

         a.       provide immediate written notice to the CONTRACTOR of all such
                  claims and suits;

         b.       permit the CONTRACTOR to assume the sole defense of and to
                  settle such claims or suits, and shall, upon the CONTRACTOR's
                  request and at the CONTRACTOR's expense, furnish all
                  information and reasonable assistance to assist the CONTRACTOR
                  in the defense or settlement of the same.

22.4     The CONTRACTOR shall be responsible for the costs of clean-up and other
         costs resulting from environmental damage which results directly from
         the activities of the CONTRACTOR, its Sub-contractors or agents in the
         execution of the Contract.

                                                                              28
<PAGE>

                                   ARTICLE 23
                          ACCIDENT OR INJURY TO WORKMEN

TELKOM shall not be liable for any damage or compensation payable at law in
respect to or in consequence of any accident or injury to any workman or other
person in the employment of the CONTRACTOR or any Sub-contractor, except an
accident or injury resulting from any act or default of TELKOM. The CONTRACTOR
shall indemnify and keep indemnified TELKOM against all such damages and
compensation, except as aforesaid, and against all claims, proceedings, costs,
charges and expenses whatsoever in respect thereof or in relation thereto.

                                   ARTICLE 24
                                   WORKMANSHIP

24.1     No work shall be covered up or put of view without the approval of
         TELKOM and the CONTRACTOR shall afford full opportunity for TELKOM to
         examine and measure any work which is about to be covered up or put out
         of view and to examine in the reasonable time before permanent work is
         placed thereon. The CONTRACTOR shall give due notice to TELKOM whenever
         any such work ready for examination and TELKOM shall, without
         unreasonable delay, unless he considers it unnecessary and advises the
         CONTRACTOR accordingly, attend for the purpose of examining and
         measuring such work or of examined.

24.2     Any part of the Works found not to be in compliance with the Contract
         shall be promptly reconstructed accordingly by the CONTRACTOR at his
         own expense. No extension of time of completion and no additional cost
         shall be made in connection therewith.

                                                                              29
<PAGE>

                                   ARTICLE 25
                             MONTHLY PROGRESS REPORT

25.1     The CONTRACTOR shall submit progress report in 10 (ten) copies to
         TELKOM's Project Manager within the first five (5) calendar days of the
         following month. The first report is to be issued at the second month
         from the Effective Date of Contract.

25.2     Progress report shall describe the progress of the Works by proving and
         evidencing objectively the amount of the Works completed in the months
         concerned. The CONTRACTOR's special attention shall be directed to
         preparation of progress report in such manner and such form that TELKOM
         can easily examine and confirm the amount of the Goods supplied /
         installed and the Works performed on a basis of System or Sub-system.

25.3     Progress Report shall cover the following items:

         a.       Total progress for the last 2 (two) months and at the end of
                  the months;

         b.       Goods supplied/ installed and Work completed measured in terms
                  of value for each Site and each for the months concerned and
                  as of the end of the months;

         c.       The CONTRACTOR's manpower mobilization for the months
                  concerned;

         d.       Major problems encountered;

         e.       Anticipated Works for the following 4 (four) months;

         f.       Inventory report;

         g.       Undelivered Goods and shipment schedule;

         h.       Pertinent information which TELKOM may request, and

         i.       Payment Schedule, in which the CONTRACTOR shall estimate the
                  receipt of payment from TELKOM on

                                                                              30
<PAGE>

                  System/Sub-system basis for the entire period of the Contract,
                  including the latest status of the amount already received.
                  The form of payment schedules will be furnished by TELKOM to
                  the CONTRACTOR. Payment schedule shall be updated by every new
                  progress report to be issued.

           The CONTRACTOR shall submit the format of progress report to TELKOM
           for its approval within 30 (thirty) days after the Effective Date of
           the Contract.

                                   ARTICLE 26
                                   CLEANING-UP

26.1     The CONTRACTOR shall at all times pay due attention to sanitation at
         Site and keep the Site free from accumulation of waste materials or
         rubbish caused by his Works.

26.2     At the completion of the Works the CONTRACTOR shall remove all the
         surplus materials and rubbish from Site as well as his Construction
         Equipment, and waste materials, within such time as designated by
         TELKOM's Project Manager.

                                   ARTICLE 27
                              INSPECTION AND TESTS

27.1     Inspection and Test of the Goods

         a.       TELKOM or the Inspector shall have the right to inspect and/
                  or test the Goods in order to confirm their conformity to the
                  Contract.

         b.       The inspections and tests may be conducted on the premises of
                  the CONTRACTOR or its Sub-contractor(s), at the point of
                  delivery and/ or at Site.

         c.       When conducted on the premises of the CONTRACTOR or its
                  Sub-contractor(s), all reasonable facilities and assistance,
                  including access to drawings and production data, shall be
                  furnished to the Inspector(s) at no charge to TELKOM.

         d.       Should any inspected or tested Goods fail to conform to the
                  specifications, TELKOM must reject them and the

                                                                              31
<PAGE>

                  CONTRACTOR shall replace the rejected Goods to meet the
                  requirements in the specifications, at no charge to TELKOM.

         e.       TELKOM's right to inspect, test and where necessary, replaced
                  Goods after the Goods arrival at Site shall not be limited or
                  waived by reason of the Goods having previously been
                  inspected, tested and passed by TELKOM or the Inspector prior
                  to the Goods shipment from the country of origin.

27.2     Interim Inspections and Testing of Works

         a.       TELKOM shall be entitled to request the CONTRACTOR at any time
                  when deemed necessary during the execution of the Contract, to
                  carry out inspections and tests of the Works so far
                  constructed/installed in the reasonable time.

         b.       The CONTRACTOR shall provide such assistance, instruments,
                  machines, and labor as are normally and reasonably required
                  for examining, measuring and testing the Works and the quality
                  of any Goods incorporated in the Works at no additional cost
                  to TELKOM.

         c.       Should any portion of the Works or Goods incorporated in the
                  Works fail to conform to the Technical Specifications after
                  the Site Inspections/ Tests, TELKOM must reject them and the
                  CONTRACTOR shall immediately repair, replace and/or correct
                  such unsatisfactory portion(s) at its own cost.

27.3     ACCEPTANCE TEST OF WORKS. Within one (1) month before the conducted
         Acceptance Test, CONTRACTOR shall submit the detail item and test
         procedure for TELKOM's approval. Acceptance Test shall be carried out
         after the Sub-system is commissioned by CONTRACTOR and is ready for
         Acceptance Test. CONTRACTOR shall carry out

                                                                              32
<PAGE>

         Acceptance Test over the whole Works as referred to in this Contract,
         at the Site of installation in accordance with Acceptance Test schedule
         which shall be submitted by CONTRACTOR to TELKOM.

         The Acceptance Test shall be carried out on Sub-system base that has
         been defined under this Contract.

         The Sub-system-3 of Ring-I (SS # 1-3) Acceptance Test shall be carried
         out by CONTRACTOR integrately among each Sub-system within Ring-I. The
         Sub-system-4 of Ring-II (SS # 2-4) Acceptance Test shall be carried out
         integrately among each Sub-system within Ring-II and also integrated
         both of Ring-I and Ring-II.

         For the purpose of such Acceptance Test of Sub-systems of Ring-I and
         Ring-II above, whereby the System shall be integrated with TELKOM's
         existing system, then TELKOM shall make available such TELKOM's
         existing system and ready to interoperate with the System within seven
         (7) days after Acceptance Test schedule as CONTRACTOR's notification
         letter pursuant to Article 27.4. In the event such TELKOM's existing
         system is not ready to interoperate with System within seven (7) days
         after such Acceptance Test schedule, such Acceptance Test shall be
         carried out without integrating with TELKOM's existing system.
         CONTRACTOR shall carry out such integration at the time when TELKOM's
         existing system is to be available and ready to interoperate as
         required in this Contract.

         The Acceptance Test shall be carried out in the presence of both
         Parties' authorized representatives.

27.4     Prior Notice to Acceptance Test. CONTRACTOR shall give notification to
         TELKOM within fourteen (14) calendar days prior to the date of the
         Acceptance Test. Within seven (7) working days after receipt of such
         notification, TELKOM shall notify CONTRACTOR of its approval for such
         Acceptance Test schedule or TELKOM may propose another Acceptance Test
         schedule which shall not be later than

                                                                              33
<PAGE>
         seven (7) calendar days after CONTRACTOR's proposed date, with remain
         to pay attention to completion date of Works according to this
         Contract.

27.5     Acceptance Test Implementation. After installation and commissioning
         for each Sub-system has been completed by CONTRACTOR, the Acceptance
         Test shall be carried out for such Sub-system and the result stated in
         the Acceptance Test Certificate (BAUT) shall be submited to TELKOM's
         Project Manager for the purpose of the issuance of BAST-I.

27.6     Error rectification obligations. Should there be any non-compliance
         with the Technical Specifications (hereinafter referred to as "Error")
         during Acceptance Test period, TELKOM and CONTRACTOR shall record such
         Error in writing and CONTRACTOR shall start to rectify such Error
         according to Acceptance Test requirements.

27.7     Major Remaining Errors. If the result on Acceptance Test indicates
         System/Sub-system which is not operable commercially, or causes damage
         or loss of data or software, or causes corrupted data (hereinafter
         referred to as "Major Remaining Errors"), then CONTRACTOR shall notify
         TELKOM in writing (a) to stop the Acceptance Test or (b) to extend the
         Acceptance Test period. In case of (a) above, after the Error has been
         rectified, CONTRACTOR shall notify TELKOM at least seven (7) calendar
         days before conducting re-testing.

27.8     Minor Remaining Errors. If Acceptance Test result indicates the System
         or Sub-system shall cause failures other than Major Remaining Errors
         that do not affect the System or Sub-system to normal operation, TELKOM
         can commercially operate the System/Sub-system. The minor items shall
         be documented and CONTRACTOR shall rectify such Errors within two (2)
         months from the issuance of BAST-I or subject to such Error.

                                                                              34
<PAGE>

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

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

27.11    The issuance of First Hand-Over Certificate (BAST-I); The issuance of
         the BAST-I for each System/Sub-system by TELKOM, if CONTRACTOR has been
         fulfilled his obligations and requirements under this Contract whit the
         following conditions:

         a.       The acceptance result (BAUT) indicate that the System or
                  Sub-system has been tested and is functioning properly in
                  accordance to this Contract without any major pending items
                  and accepted by TELKOM, furthermore TELKOM's Project Manager
                  will issue BAST-I for the relevant System/Sub-system within
                  seven (7) calendar days after issuance of BAUT.

         b.       In the event TELKOM has put the System or Sub-system
                  commercially operated before BAST-I is issued, then the System
                  or Sub-system shall be deemed to be accepted and the BAST-I
                  shall be issued by TELKOM.

         c.       The issuance of BAST-I by TELKOM shall not be withheld due to
                  Minor Remaining Errors by taking into consideration that (i)
                  such deficiency shall not affect to commercially operation by
                  TELKOM and

                                                                              35
<PAGE>

         maintenance activities of the System or Sub-system under this Contract
         (ii) such deficiency will be put as an attachment to the BAST-I in
         order for CONTRACTOR to rectify in accordance with Article 27.8

27.12    BAST-2 shall be issued based on System or Sub-system basis by TELKOM's
         Project Manager, twelve (12) months after the date of BAST-I for each
         System or Sub-system for Land Portion and five (5) years after the date
         of BAST-I for each System or Sub-system for Marine Protion provided
         that CONTRACTOR has fulfilled the following conditions:

         a.       all remaining errors have been rectified and reported;

         b.       all warranty obligations have been fulfilled;

         c.       as-built drawing has been completed and submitted.

                                   ARTICLE 28
                                  CERTIFICATES

28.1     Factory Test Certificate.

         After the witnessing of factory tests by the Inspector (if any) has
         been satisfactorily completed, the Inspector shall issue a "Factory
         Test Certificate for Goods" which is signed by both Parties. Inspector
         shall state whether or not the test results were satisfactory and the
         date on which the witnessing of the factory tests were completed, as
         well as the particulars of the Goods inspected and tested. Six (6)
         copies of such a certificate shall be delivered to the CONTRACTOR
         within fourteen (14) days after the CONTRACTOR has submitted to the
         Inspector the tests data for factory tests witnessed by the Inspector.

         In the event that TELKOM finds it is impossible to dispatch the
         Inspector to witness a factory test after having received advanced
         notice of a factory test from the CONTRACTOR within a period agreed by
         both parties, TELKOM shall notify the CONTRACTOR in writing to such
         effect and upon notification from TELKOM, the

                                                                              36
<PAGE>

         CONTRACTOR shall carry out the factory test without the Inspector's
         attendance. The CONTRACTOR shall prepare the certificate itself and
         shall guarantee that the result of the test is within the Technical
         Specification.

         TELKOM shall accept the test certificate as though it were a
         certificate issued by the Inspector.

28.2     Goods Arrival Certificate

         Upon the arrival all of the Goods at a Site, Inspector shall make a
         visual inspection tests to determine if the Goods are the same and
         correct in the description of items and quantities, referred to in the
         shipping/ delivery documents furnished by the CONTRACTOR.

         In order that TELKOM may make a timely inspection of the Goods
         delivered to Site, the CONTRACTOR shall notify TELKOM of the type and
         quantity of such Goods at least fourteen (14) calendar days prior to
         their delivery.

         TELKOM upon a satisfactory result of their inspection and all of the
         Goods has been completely delivered within fourteen (14) calendar days
         thereof, Inspector shall issue to the CONTRACTOR a Goods Arrival
         Certificate of the Goods which is counter signed by Parties.

28.3     Training Certificate

         Upon the completion of Training performance, TELKOM's Project Manager
         shall issue a Training Certificate. Submission of this certificate base
         to the CONTRACTOR written request accompanied by a document which
         indicates that such of training has completely been finished and
         compliant with the Contract.

28.4     Final Acceptance Certificate / BAST-II

         a.       Land Portion

                  At the end of the one (1) year warranty period and after the
                  satisfactory completion of the Final Acceptance Tests of the
                  System or Sub-system, defined in

                                                                              37
<PAGE>

                  Attachment-7 (Technical Specification), and provided that the
                  CONTRACTOR has fulfilled its obligations under the Contract,
                  TELKOM's Project Manager shall issue a Final Acceptance
                  Certificate (BAST-2).

         b.       Marine Portion

                  At the end of the five (5) year warranty period and after the
                  satisfactory completion of the Acceptance Test of the System
                  or Sub-system, defined in Attachment-7 (Technical
                  Specification), and provided that the CONTRACTOR has fulfilled
                  its obligations under the Contract, TELKOM's Project Manager
                  shall issue a Final Acceptance Certificate.

         c.       The Final Acceptance Certificate will not apply to those parts
                  which may have been replaced during the warranty period or to
                  those parts having been the subject of an extension of
                  warranty according to the provisions of Article 29.2 hereof.

         d.       The issuance of Final Acceptance Certificate shall not be
                  unreasonably withheld or delayed, but in the event that a
                  pattern of failure or pattern of degradation develops that is
                  likely to cause the System or Sub-system to fail to meet the
                  requirements of the Contract or such other performance levels
                  agreed upon by the TELKOM over the twenty-five (25) years
                  design life of the System or Sub-system, final acceptance may
                  be withheld until it can be demonstrated to the satisfaction
                  of the TELKOM that no pattern of failure or pattern of
                  degradation shall have developed that is likely to cause the
                  TELKOM to fail to meet the requirements of Attachment-7
                  (Technical Specification), and/or CONTRACTOR's system
                  description over the twenty-five (25) years design life. In
                  such event, the validity of the letter of performance security
                  provided for under Article 7 shall remain in force until the
                  Final Acceptance Certificate is issued.

         e.       At the discretion of the TELKOM with pursuant to Article 28.4
                  the final acceptance tests programme may consist of a
                  repetition of a part or the whole of the tests of the System
                  or Sub-system

                                                                              38
<PAGE>

         Acceptance test program.

                                   ARTICLE 29
                                    WARRANTY

29.1     The CONTRACTOR shall warrant that the Goods supplied under the Contract
         are new, unused, of the most recent or current models and incorporate
         all recent improvements in design and materials and that all Works
         performed by him shall be perfect in materials and workmanship. The
         CONTRACTOR shall further warrant that the Goods supplied and the Works
         performed under this Contract shall have no defect arising from design,
         materials or workmanship or from any act or omission of the CONTRACTOR,
         which may develop during normal use of the Goods supplied and the Works
         performed in the conditions existing at Site.

29.2     The CONTRACTOR shall provide warranty for the System or Sub-system as
         follows:

         a.       Land Portion.

                  The warranty period for the Land Portion of the System or
                  Sub-system shall remain valid for one (1) year commencing from
                  the respective date of the System or Sub-system Acceptance
                  Certificates.

         b.       Marine Portion.

                  The warranty period for the Marine Portion of the System or
                  Sub-system shall remain valid for five (5) years commencing
                  from the respective date of the System or Sub-system
                  Acceptance Certificates.

         c.       The CONTRACTOR warrants that the System, including its spares,
                  shall conform fully, over the twenty-five (25) years design
                  life, to the requirements of the Contract or such other
                  performance levels agreed upon as acceptable by TELKOM and
                  that no pattern of failure or pattern of degradation shall
                  have developed that is likely to cause the System or
                  Sub-system to fail to meet the requirements of Attachment-7
                  (Technical Specification) over the twenty-five (25) years
                  design life.

                                                                              39
<PAGE>

29.3     TELKOM shall promptly notify the CONTRACTOR in writing of any claims
         arising under this warranty. Upon receipt of such notice, the
         CONTRACTOR shall :

         a.       perform any repair required to restore the System or
                  Sub-system to the requirements of the Contract or such other
                  performance levels agreed upon by TELKOM, if the System should
                  fail to meet such requirements at any time during the warranty
                  period or has developed a pattern of failure or pattern of
                  degradation that is likely to cause the System or Sub-system
                  to fail to meet such requirements. However, TELKOM may elect,
                  at their sole option, to make repairs, including at sea
                  repairs which are covered by the warranty. Any equipment
                  discovered to be defective or faulty and recovered during a
                  warranty repair shall be returned to the CONTRACTOR at
                  TELKOM's request and at TELKOM's expense. The CONTRACTOR shall
                  reimburse TELKOM for the cost of such repairs within twenty
                  one (21) days from receipt of a relevant notice issued by
                  TELKOM. The CONTRACTOR shall be entitled to have a
                  representative during repair execution to observe the System
                  or Sub-system defective or faulty recovered. Such repairs by
                  TELKOM shall not in any way diminish the CONTRACTOR's
                  obligations under the warranty.

         b.       bear the total cost of each repair required during the
                  warranty period. This cost shall include but not limited to
                  the cost of any vessels (including proportionate standing
                  charges and running costs for cable ships from the maintenance
                  zones) and/or any costs arising from burial or reburial, the
                  components, equipment or materials requiring replacement, the
                  cost of any additional equipment necessary to effect the
                  repair, the cost of making the repair, the cost of labor and
                  engineering assistance or development required to make the
                  repair and all associated costs such as but not limited to
                  shipping and customs and services that may be required to make
                  the repair.

                                                                              40
<PAGE>

29.4     The warranty period of items not accepted, provided or requiring repair
         or replacement at the System or Sub-system acceptance date shall start
         from the date(s) such items are accepted by TELKOM. Any defective part
         repaired or replaced during the warranty period shall itself be subject
         to a further warranty period of one (1) year for Land Portion and five
         (5) years for Marine Portion from the date of repair or replacement.

29.5     If during the warranty period defects are found on repeated occasions
         in any part or parts of the System or Sub-system or if a pattern of
         failure or pattern of degradation is likely to cause any part or parts
         to fail to meet the specified requirements over the twenty-five (25)
         years design life, such part or parts shall not be repaired but shall
         be replaced by new part(s) at the request of TELKOM, including all the
         appropriate spares.

         a.       For the purpose of this Article, a pattern of failure or
                  pattern of degradation shall be deemed to exist if:

                  1)       TELKOM have notified the CONTRACTOR that in their
                           reasonable opinion failures of the same or similar
                           mechanisms have occurred which show a deterioration
                           of System or Sub-system performance that will render
                           the System outside its specification during its
                           design life, and

                  2)       The CONTRACTOR, having carried out an investigation,
                           cannot demonstrate to the reasonable satisfaction of
                           System or Sub-system that:

                           (1)      the failures/deteriorations are within the
                                    predictions of the reliability model or
                                    Mean-Time-Between-Failure (MTBF) figures;

                           (2)      the failures/deteriorations are not due to a
                                    design defect in the

                                                                              41
<PAGE>

                                    component or its application; or

                           (3)      the failures/deteriorations only apply to a
                                    limited number of parts, for example, as the
                                    result of a manufacturing (or batch related)
                                    inconsistency.

                  b.       The investigation into the cause of any
                           failures/deteriorations and any associated remedial
                           action shall be carried out by the CONTRACTOR within
                           a reasonable time-scale with regular progress reports
                           as requested by TELKOM.

29.6     In addition, the CONTRACTOR shall pay to TELKOM all actual expenses (if
         any) incurred by TELKOM in testing or examining any part of the System
         or Sub-system for the purpose of or in connection with this Article or
         in connection with making good, replacing or repairing any part of the
         System atau Sub-system.

29.7     The CONTRACTOR shall make every reasonable effort to minimize the
         period of time that the System or Sub-system is out of service for
         repair and testing. For failures or any situations which cause or risk
         to cause an outage of the System or Sub-system, the CONTRACTOR
         undertakes to initiate a corrective intervention immediately but in any
         case no later than two (2) days after reception of a notice from
         TELKOM. TELKOM reserve the right to determine the timing of
         rectification.

29.8     The CONTRACTOR shall effect all repairs of the System or Sub-system
         through the use of repair materials supplied by it. However, the
         CONTRACTOR with the agreement of TELKOM, may use the materials needed
         to effect a repair from TELKOM's available spare materials, components
         or equipment. The CONTRACTOR shall replace such material supplied from
         TELKOM's spare stock at a time mutually agreed by TELKOM and the
         CONTRACTOR. All materials supplied to replenish TELKOM's spare and all
         materials used to repair the System or Sub-system, which are not
         supplied from TELKOM's spare materials, shall be warranted for a period
         of one (1) year for

                                                                              42
<PAGE>

         Land Portion and five (5) years for Marine Portion from the date of
         replacement.

29.9     The repair or replacement of any faulty unit or equipment includes the
         delivery to TELKOM with a descriptive report of the fault found and,
         when appropriate, of the repair carried out on such faulty unit or
         equipment. The maximum period for repair of the units or equipment
         (including shipping and customs clearance) is defined in Attachment-7
         (Technical Specification).

29.10    For the purpose of Marine Portion maintenance:

         a.       The usage of universal jointing and/or universal coupling
                  equipment for the maintenance or repair of the Marine Portion
                  during the warranty period shall not in any way invalidate the
                  warranty for Marine Portion and the CONTRACTOR shall accept
                  the warranty responsibility for the universal jointing and/or
                  universal coupling equipment used during a repair throughout
                  the warranty period.

         b.       If TELKOM decide to pool any spareparts supplied under this
                  Contract with other spareparts supplied for other cable
                  systems for which they have maintenance authorities and where
                  technical compatibility exists, the usage of such other
                  spareparts supplied from another cable system for maintenance
                  shall not invalidate the warranty of Marine Portion during the
                  warranty period.

                                   ARTICLE 30
                               LONG TERM SUPPORT

30.1     For a period of twenty-five (25) years starting on the date of System
         or Sub-system Acceptance Certificate, the CONTRACTOR shall supply to
         the TELKOM :

         a.       technical support and advice in respect of the design,
                  maintenance and operation of the System.

         b.       supplies, replacement equipment, repair

                                                                              43
<PAGE>

         service and software support to the System at a reasonable price.

30.2     Where identical parts or components cannot be supplied the CONTRACTOR
         shall provide equivalent and compatible parts, and shall be responsible
         for any adaptive engineering work and all implementation documentation
         that may be necessary.

30.3     Notwithstanding Article 30.2, if for any reason the CONTRACTOR intends
         to cease manufacturing identical or fully compatible spare parts and
         replacement equipment, the CONTRACTOR shall give a minimum of one (1)
         year prior written notice to TELKOM to allow TELKOM to order from the
         CONTRACTOR any required spare parts and replacement equipment and shall
         forthwith provide full details of the equivalents. However, the
         CONTRACTOR shall not cease to manufacture such parts and equipment
         before the expiration of the warranty period, as described in Article
         29.

                                   ARTICLE 31
                               TIME OF COMPLETION

31.1     The Works shall be completed on Sub-system basis within time of
         completion assigned for each Site as indicated in Plan of Work.
         Completion of the Works of each Sub-system is signified at the date of
         issuance of Sub-system Acceptance Certificate.

31.2     The entire Works under the Contract shall be completed within three
         hundred fifteen (315) days from EDC, as follows:

         a.       RING-I shall be completed within two hundred fifty six (256)
                  days from EDC, and

         b.       RING-II shall be completed within three hundred fifteen (315)
                  days from EDC.

31.3     Within thirty (30) calendar days from the Effective Date of the
         Contract, the CONTRACTOR shall give TELKOM a

                                                                              44
<PAGE>

         detailed Plan of Work (PoW) showing the accepted milestones of each
         Site.

31.4     The PoW shall be indicated in the form of a bar chart and Critical Path
         Method (CPM) showing:

         a.       the dates of readiness for factory test and shipping;

         b.       the dates of beginning and completing of Site Survey and DRM;

         c.       the dates of beginning and completion of installations at the
                  Sites, and

         d.       The dates of readiness for System or Sub-system Acceptance
                  Test.

31.5     The CONTRACTOR shall provide an updated schedule every two (2) months
         showing progress. The PoW to be updated shall not relieve the
         CONTRACTOR's obligations to complete the Works in time.

31.6     The CONTRACTOR shall strictly observe the project implementation in
         accordance with Time of Completion as mentioned in Article 31.

                                   ARTICLE 32
                                  SPARE PARTS

32.1     During the warranty period, all parts that are required to be replaced,
         shall be supplied by CONTRACTOR without charge to TELKOM if such
         replacement is due to imperfect workmanship, faulty design or faulty
         material supplied by the CONTRACTOR, or any act, neglect or omission on
         the CONTRACTOR's part or unless such errors or non-compliance have been
         cause by TELKOM or third party(ies).

32.2     CONTRACTOR shall provide prices and suppliers (local or overseas)
         information, regarding spare parts, and suggest the number of spare to
         be purchased and stocked for the successful maintenance of the System
         /Sub-system.

                                                                              45
<PAGE>

32.3     CONTRACTOR shall provide a list of spare part including description and
         quantity as appropriate by TELKOM.

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

32.5     The CONTRACTOR shall guarantee that any additional Goods as well as
         spares shall be supplied any time for a period of five (5) years from
         the date of the last Final Acceptance Certificate of Contract (BAST-2).

32.6     The CONTRACTOR shall carry out sufficient inventories to assure
         ex-stock supply of consumable spares for TELKOM

                                   ARTICLE 33
                        TOOLS AND MEASURING EQUIPMENT

33.1     The CONTRACTOR shall provide tools and measuring equipment with
         instruction manuals required for maintenance and operation of the
         completed Works in accordance with the Bill of Quantity. The tools and
         measuring equipment are detailed in the Technical Specification. Tools
         and measuring equipment which provided under this Contract which shall
         be handed over to TELKOM are new and original.

33.2     For the installation and/or construction activities purpose, the
         CONTRACTOR shall provide all necessaries tools and measuring equipment
         by themselves.

                                   ARTICLE 34
                                TERM OF PAYMENT

34.1     The terms of payment of this Works other than Training under this
         Contract will be made by TELKOM to CONTRACTOR as follows:

                                                                              46
<PAGE>

         1)       Payment will be made 100% of Contract Price per Sub-system
                  after the BAST-I issued by TELKOM indicating that the
                  Sub-system has successfully been completed and can properly be
                  put into commercially operation.

         2)       CONTRACTOR has submitted completed and valid invoice in three
                  (3) original copies to TELKOM that consist of the following
                  document :

                  1.       Original of BAST-I for related Sub-system;

                  2.       Copy of Acceptance Test Certificate (BAUT) for
                           related Sub-system;

                  3.       Copy of insurance policy for Goods and Services
                           pursuant to Article 14.6 for the first payment;

                  4.       Original of warranty bond;

                  5.       Copy of valid performance bond;

                  6.       Copy of cerificate of origin from Chamber of Commerce
                           of origin country.

                  7.       Tax invoice following the applicable Indonesian
                           regulation.

                  8.       Invoice and simple receipt in duplicated;

                  9.       Cover letter.

34.2     PAYMENT FOR TRAINING

         Payment for training will be made by TELKOM to CONTRACTOR in a whole or
         100% from the total training Contract Price after all training program
         has been conducted by CONTRACTOR for TELKOMS's employees which is shown
         by the issuance of Certificate of Training Completion.

         Payment for training will be made by TELKOM to CONTRACTOR against
         presentation of the following documents which shall be issued in
         accordance with the form provided in Attachment-12 (Training)of this
         Contract:

         1)       Original cover letter from CONTRACTOR's Project Manager;

         2)       One (1) original and two (2) copies

                                                                              47
<PAGE>

                  of invoice;

         3)       Receipt;

         4)       Original VAT invoice (Faktur Pajak);

         5)       Original Certificate of Training Completion

34.3     Payment for Dollar US portion shall be made by TELKOM in Indonesian
         Rupiah currency (IDR) with conversion of middle rate of Bank Indonesia
         at the time of the payment, while invoicing shall be in US Dollar and
         Indonesian Rupiah Currency (IDR) under this Contract.

34.4     Period of Payment

         Each of payment shall be made within thirty (30) calendar days after
         receipt of complete, valid and correct documents by TELKOM.

34.5     Address of invoicing.

         Any invoices and related documents under this Contract shall be
         submitted to the following addresses:
         TO: PT Telekomunikasi Indonesia,Tbk
         Att. Senior Manager of Finance
         LONG DISTANCE DIVISION
         Jalan Japati No.1, 2nd Floor
         Bandung 40133

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

         For USD Portion

         Bank                : CitiBank Jakarta Branch
         Address             : Jl.Jendral Sudirman
                               Kav.3-4 Jakarta - 10220
         Account No.         : (to be advised)

         In favour of NEC CORPORATION and transfer fee shall be responsibility
         of CONTRACTOR.

         For IDR Portion
         Bank             : Deutsche Bank AG,
                            Jakarta Branch
         Address          : Jalan  Imam Bonjol No.80
                            Jakarta 10310
         Account No.      : 000-3467-00.2

         In favour of PT Siemens Indonesia and transfer
         fee shall be responsibility of CONTRACTOR.

                                                                              48
<PAGE>

                                   ARTICLE 35
                                 CONTRACT PRICE

35.1     The Contract Price for execution of this Contract is as follows :

                           SUMMARY OF CONTRACT PRICE

                                                           CURRENCY
   NO              DESCRIPTION
--------- ---------------------------------------------------------------------
                                            USD                 IDR
--------- ---------------------------------------------------------------------
   1.     Ring-I                             42,324,757.24   68.721.160.491,96
--------- ---------------------------------------------------------------------
   2.     Ring-II                                            82.623.470.975,23
--------- ---------------------------------------------------------------------
   3.     Training                              388,810.76    2.876.008.535,60
--------- ---------------------------------------------------------------------
                                  TOTAL      42,713,568.00  154.220.640.002,00
--------- ---------------------------------------------------------------------
   4.     10% VAT                             4,271,356.80   15.422.064.000,20
--------- ---------------------------------------------------------------------
                            GRAND TOTAL      46,984,924.80  169.642.704.002,20
--------- ---------------------------------------------------------------------
(Said: Forty Six Million Nine Hundred Eighty Four Thousand Nine Hundred Twenty
Four and Eighty Cent Us Dollar AND One Hundred Sixty Nine Billion Six Hundred
Forty Two Million Seven Hundred and Four Thousand and Two Point Twenty Rupiah)

35.2     The details are specified in Article 35.1. as mentioned in Attachment-1
         (Price Summary and Bill of Quantity) of this Contract.

35.3     TELKOM have the right to optimize the Contract Price by changing the
         conditions of terms of payment, payment currency and project efficiency
         as included in Attachment-13 (Optimization and Project Efficiency)
         after the Contract signing. Variation of the Contract Price shall be
         agreed at the first Design Review Meeting.

35.2     No further costs. Contract Price set forth in the breakdown of price as
         mentioned in Attachment-1 (Price Summary and Bill of Quantity) of this
         Contract shall cover the entirety of parts which are required for the
         implementation of the Works in accordance with this Contract, save to
         the extent any additional or reduced Works as required by TELKOM in
         writing as referred to in Article 37 and Article 38 with respect to
         addition or reduction of the Works under this Contract.

35.3     The total Contract Price shall include VAT currently at 10%, income
         tax, other payable taxes, duties, levies and fees in accordance with
         the prevailing laws and regulation that may be imposed or levied in

                                                                              49

<PAGE>

         connection with the execution of the Contract

35.4     Unit prices quoted in Attachment 1 (Price Summary and Bill of Quantity)
         are firm fixed prices and shall not be varied except new item not
         defined in such attachment.

                                   ARTICLE 36
                            TAXES, LEVIES AND DUTIES

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

36.2     Importer. All the imported Goods including software under this Contract
         shall be conducted under DDP (Delivered Duty Paid) as referred to in
         Incoterm 2000. Therefore, it is agreed by the Parties hereto that : (i)
         the Party who acts as the importer shall be CONTRACTOR; and (ii)
         CONTRACTOR shall use its Import Licence or (Agent's) Master List in
         conducting custom clearance of the Goods from Custom Authority; (iii)
         All the cost of material import to Indonesia shall be responsible by
         CONTRACTOR.

36.3     All the Goods in USD currency under this Contract shall be conducted
         under CIF as referred to in Incoterm 2000. Therefore, it is agreed by
         the Parties hereto that : (i) TELKOM shall be the importer; and (ii)
         CONTRACTOR shall be responsible for and carry out importation and
         custom clearance; (iii) All the costs of material import to Indonesia
         including storage, penalty, if any shall be the responsibility of the
         CONTRACTOR.

         If TELKOM's import license will not be available then the Parties will
         discuss and

                                                                              50
<PAGE>

         settle this matter.

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

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

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

                                   ARTICLE 37
                               CONTRACT CHANGE

37.1     TELKOM may at any time, by a written order given to the CONTRACTOR
         pursuant to Article 35, make any change to the provisions of the
         Contract as may be considered necessary during the execution of the
         Works in any one or more of the following:

         a.       Volumes and quantities of the Goods to be supplied and the
                  Services to be performed by the CONTRACTOR, and

         b.       Plan of Work.

37.2     If any change causes an increase or decrease of cost and any part of
         the Works under the Contract, an equitable adjustment shall be made in
         the Contract Price and/or Plan of Work upon mutual agreement by the
         Parties hereto.

                                                                              51
<PAGE>

37.3     TELKOM shall instruct the CONTRACTOR to provide the change or vary the
         Works, with the consent in writing. Such change on the Contract Price
         will be determined as follows:

         a.       if the variations concern only quantities of equipment or
                  services for which a unit price or rate is indicated in
                  Attachment-1 (Price Summary and Bill of Quantity), the unit
                  price or rate as the case may be shall be applied.

         b.       if the subject of the variations is not covered by a unit
                  price or rate in Price Schedule, the CONTRACTOR and TELKOM
                  shall mutualy agree on such new unit price proposed by
                  CONTRACTOR.

37.4     If such variation effect to any part of the Works or Contract Price, an
         equitable adjustment shall be made upon mutual agreement by the Parties
         hereto.

37.5     Any changed in respect of the Contract shall only be recognized or
         acceded to when that has been agreed in writing by the TELKOM prior to
         implementation of the Contract changed by the CONTRACTOR. The
         implementation of such change may be executed by CONTRACTOR in parallel
         after having approval from TELKOM's Project Manager or after signing of
         the Contract Amendment pursuant to Article 38 by both Parties.

37.6     TELKOM shall not be liable for any additional work unless it is
         recorded in Contract Change. If the CONTRACTOR proceeds without such
         written authorization, it shall be deemed a waiver by the CONTRACTOR of
         any and all claims for additional payments.

                                                                              52
<PAGE>

                                   ARTICLE 38
                             CONTRACT AMENDMENTS

Any variation in or modification of the terms of the Contract including but not
limited to Contract Price during the execution of the Contract shall be subject
to Contract amendment in writing agreed by the Parties hereto

                                   ARTICLE 39
                                   ASSIGNMENT

The CONTRACTOR shall not assign, in whole or in part, its obligations to perform
of Works under the Contract, except with TELKOM's prior written consent.

                                   ARTICLE 40
                                SUB-CONTRACTORS

40.1     Prior to the appointment of Sub-contractors, the CONTRACTOR shall
         notify TELKOM in writing of such intended appointments and shall obtain
         TELKOM's written approval.

40.2     The CONTRACTOR's notification of Sub-contractors and subsequent
         TELKOM's approval thereof shall not release the CONTRACTOR from any
         liability or obligation under the Contract.

                                   ARTICLE 41
                       DELAYS IN THE WORKS PERFORMANCE

41.1     Subject to Articles 37 and 38 the CONTRACTOR shall complete the supply
         and installation of the System or Sub-system by the Time of Completion
         as specified in Article 31.

41.2     If the execution of the Works shall be delayed by reason of any event
         of force majeure, without the default or negligence on the part of the
         CONTRACTOR and pursuant to Article 41.3, the CONTRACTOR may be granted
         such extension of time for completion as shall be mutually agreed,
         without any financial claim from the CONTRACTOR to TELKOM.

41.3     In connection with Article 41.2 and provided that the CONTRACTOR proves
         that:

         a.       there is insufficient contingency time

                                                                              53
<PAGE>

                  indicated in Plan of Work to cover any delay, and;

         b.       such delay or any duration of such delays could not be avoided
                  by use of alternative resources, and ;

         c.       such delay could not be avoided even after reasonable
                  endeavors have been attempted to mitigate the impact on Time
                  of Completion;

         d.       such extension of Time of Completion will only be considered
                  if the CONTRACTOR notifies TELKOM of the cause of delay within
                  fourteen (14) calendar days of commencement of the delay and
                  provides to TELKOM, either on completion of the Works or at an
                  appropriate stage in the Works, satisfactory evidence of the
                  effects of the delay.

41.4     If the System or Sub-system is not completed in accordance with Article
         31 or by the end of the period of extension agreed upon under Article
         38, the CONTRACTOR shall pay to the TELKOM by way of liquidated damages
         pursuant to Article 42.

                                   ARTICLE 42
                               LIQUIDATED DAMAGES

42.1.    Liquidated Damages Amount. For any delay in the Time of Completion
         pursuant to Article 31 and Attachment-2 (Plan of Work), TELKOM shall be
         entitled for liquidated damages from CONTRACTOR amounting of 1 0/00
         (one per mil) of Sub-system's Contract Price excluding 10% VAT for each
         day delay for a maximum ten percent (10%) of the Contract Price.

42.2.    The sum or sums of liquidated damages as a result of delay pursuant to
         Article 42.1 above will be deducted from amount of CONTRACTOR's invoice
         which is not yet paid by TELKOM without prejudice to TELKOM's right of
         termination under Article 43 of this Contract.

                                                                              54
<PAGE>

                                   Article 43
                             Termination for Default

43.1     TELKOM may terminate the Contract in whole or in part, if the following
         conditions are occured :

         a.       if the CONTRACTOR fails to deliver any or all of the Goods or
                  fails to perform any or all of the Works within Time of
                  Completion specified in Article 31, or any extension thereof
                  granted by TELKOM pursuant to Article 38, or;

         b.       if the CONTRACTOR is in material breach of any of provisions
                  of the Contract

         c.       if the CONTRACTOR do not take any action within thirty (30)
                  calendar days since the Effective Date of Contract;

         d.       if the CONTRACTOR delay up to fifty (50) calendar days from
                  the agreed Time of Completion as describe in Article 31
                  without any writing from CONTRACTOR pursuant to Article 41.2.

         TELKOM shall give notice in writing to the CONTRACTOR to make good the
         default before TELKOM terminate the Contract. If the CONTRACTOR fails
         to make good the default within thirty (30) calendar days from the date
         of notice was given, then TELKOM may terminate the Contract. This
         condition does not apply to Article 43.1.c.

43.2     If the Contract shall be terminated due to the above reasons Article
         43.1 then TELKOM have the right to forfeiture the performance bond
         which will be proprietary of TELKOM.

43.3     In the event TELKOM terminates the Contract in whole or in part,
         pursuant to Article 43.1. TELKOM may procure, upon such terms and in
         such manner as it deems appropriate, the Goods similar to those
         undelivered and the Works unperformed, and the CONTRACTOR shall be
         liable to

                                                                              55
<PAGE>

         TELKOM for any excess costs for such similar Goods and Works. However,
         the CONTRACTOR shall continue performance of the Contract to the extent
         not terminated.

                                   ARTICLE 44
                                 FORCE MAJEURE

44.1     Notwithstanding the provisions of Articles 41, 42, and 43.1, the
         CONTRACTOR shall not be liable for forfeiture of its performance bond,
         liquidated damages or termination for default, if and to the extent
         that, its delay in performance or other failure to perform its
         obligations under the Contract is the result of an event of force
         majeure.

44.2     For purposes of this Article, "Force Majeure" means an event having
         occurred in Indonesia which is beyond the control of the CONTRACTOR and
         not involving the seeable cause. Such events may the Government of
         Indonesia in its sovereign or capacity, fire, flood, earthquake,
         landslide, epidemics, freight embargoes, war, hostilities (whether war
         be declared or not), invasion, act of foreign enemies, the nuclear and
         pressure wave risk described in Article 9.6. or in so far as it relates
         to Indonesia in which the Goods are being and are to be supplied and
         the Works are being and are to be executed or maintained, rebellion,
         revolution, insurrection, military or usurped power, civil war, or
         unless solely restricted to the employees of the CONTRACTOR or of his
         sub-CONTRACTORs and arising from the conduct of the Works, riot,
         commotion or disorder.

44.3     If the force majeure occurred outside Indonesia, TELKOM may consider to
         extend of Time of Completion without any additional cost to TELKOM,
         provided that the CONTRACTOR shall proves with a letter statement
         issued by Authorized Institution related country which related to event
         of force majeure.

44.4     If a Force Majeure situation arises, the CONTRACTOR shall promptly
         notify TELKOM in writing of such condition and the cause thereof. The
         Contract may be

                                                                              56
<PAGE>

         amended or its duration extended or terminated wholly or partly by
         mutual agreement of Parties.

44.5     In the event of force majeure, the CONTRACTOR shall be entitled to
         suspension of the execution of the Contract for the period such force
         majeure and its consequences will last. However, the CONTRACTOR shall
         seek all reasonable alternative means to continue its obligations for
         the Contract area(s) not affected by the force majeure event.

44.6     In case of the suspension of the Works caused by the force majeure
         event, the CONTRACTOR shall properly protect and secure the Works
         during such suspension period. If such protection and securing of the
         Works is deemed impracticable, the matter shall be notified by the
         CONTRACTOR to TELKOM in writing by clarifying the reason and shall be
         settled through negotiation between both Parties hereto.

44.7     Should the suspension as specified in Article 44.5. have continued for
         a period exceeding 6 (six) months, either of the Parties hereto shall
         be entitled to terminate the Contract with respect to the remaining
         Works and shall give notice of termination by registered mail or any
         alternative means to the other Party.

44.8     In the case of such termination, TELKOM shall pay to the CONTRACTOR the
         value of the Goods forwarded to the Site in Indonesia and the cost of
         the Works executed prior to the termination. For all the expenses to be
         made by the CONTRACTOR for the termination of the Contract, equitable
         solution shall be made through negotiation by both Parties hereto.

                                                                              57
<PAGE>

                                   ARTICLE 45
                           TERMINATION FOR INSOLVENCY

TELKOM may, at any time, terminate the Contract by giving a written notice to
the CONTRACTOR, without compensation to the CONTRACTOR, if the CONTRACTOR
becomes bankrupt or otherwise insolvent, provided that such termination will not
prejudice or affect any right of action or remedy which has accrued or will
accrue thereafter to TELKOM.

                                   ARTICLE 46
                          TERMINATION FOR CONVENIENCE

46.1     TELKOM, may by written notice sent to the CONTRACTOR, terminate the
         Contract, in whole or in part, at any time for its convenience. The
         notice of termination shall specify that a) termination is for TELKOM's
         convenience, b) the extent to which the CONTRACTOR's performance under
         the Contract is terminated, and c) the date upon which such termination
         becomes effective.

46.2     The Goods that are complete and ready for shipment within 30 (thirty)
         days after the CONTRACTOR's receipt of notice of termination shall be
         purchased by TELKOM at the Contract terms and prices. For the remaining
         Goods, TELKOM may elect:

         a.       to have any portion completed and delivered at the Contract
                  terms and Price, and/ or;

         b.       to cancel the remainder and pay to the CONTRACTOR an agreed
                  amount for partially completed Goods and for materials,
                  equipment, and parts previously procured by the CONTRACTOR.

         c.       for the Works that have been executed prior to effectiveness
                  of notice of termination, TELKOM shall pay to the CONTRACTOR
                  for all reasonable costs incurred in such execution of the
                  Works, in due consideration of the sum already paid to the
                  CONTRACTOR.

                                                                              58
<PAGE>

                                   ARTICLE 47
                             RESOLUTION OF DISPUTES

47.1     TELKOM and CONTRACTOR shall make every effort to resolve amicably by
         direct informal negotiation any disagreement or dispute arising between
         them under or in connection with the Contract. For this purpose, TELKOM
         and the CONTRACTOR shall establish Dispute Review Panel as mentioned in
         Article 47.2 of this Contract.

47.2     If after thirty (30) days from the commencement of such informal
         negotiations, TELKOM and the CONTRACTOR have been unable to resolve
         amicably a Contract dispute, either Party may require that the dispute
         be referred for resolution to the formal mechanisms specified herein.
         These mechanisms may include, but are not restricted to, conciliation
         mediated by a third party, adjudication in an agreed national
         arbitration, Indonesian National Board Arbitration (Badan Arbitrase
         Nasional Indonesia) in accordance with the laws of Indonesia.

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

47.4     The costs incurred by the Dispute Review Panel for the first two
         members in the performance of its duties and responsibilities shall be
         borne respectively by TELKOM and the CONTRACTOR, and for the third
         member equally by TELKOM and the CONTRACTOR.

                                                                              59
<PAGE>

                                   ARTICLE 48
                      LANGUAGE AND MEASUREMENT SYSTEM

The Contract shall be written in the English and Indonesian languages and shall
be indicated in metric units of measurements system. The Indonesian version of
the Contract shall prevail in case of difference in interpretation between the
English version and the Indonesian version. All correspondence and other
documents pertaining to the Contract which are exchanged by the parties shall be
written in Indonesia or English.

                                   ARTICLE 49
                APPLICABLE LAWS AND COMPLIANCE WITH STATUTES,
                              REGULATIONS, AND BY-LAWS

49.1     The Contract shall be interpreted in accordance with the laws of
         Republic of Indonesia.

49.2     The CONTRACTOR shall, in all matters arising in the performance of the
         Contract, conform in all respects with the provisions of national or
         state statutes, ordinances or other laws or any regulations or by-laws
         of any local or other duly constituted authority that shall be
         applicable to the Works, and shall keep TELKOM indemnified against all
         penalties and liabilities of any kind for breach of any such satutes,
         ordinances or laws, regulations or by-laws.

49.3     TELKOM assumes that the CONTRACTOR has thoroughly informed himself
         about such laws and regulations, and the CONTRACTOR shall be
         responsible for the observance of the same.

49.4     Should there occur in Indonesia, subsequent to the date of this
         contract, any change to the provisions of national or state statute,
         ordinance or other law or any regulation or by-law of any local or
         other duly constituted authority, or the introduction of any such
         national statute or others which causes an increase or decrease of the
         Contract Price and/ or substantial effects in the Time of Completion in
         the CONTRACTOR's performance under the Contract, such increase or
         decrease of the Contract Price and/ or Time of Completion shall
         equitably adjusted by mutual agreement between the Parties.

                                                                              60
<PAGE>

                                   ARTICLE 50
                                    NOTICES

50.1     Any notice given by one party to the other pursuant to the Contract
         shall be sent in writing and shall be addressed to TELKOM and the
         CONTRACTOR as follows :

         a.       TELKOM

                  Project Manager for RING JASUKA BACKBONE

                  PT TELEKOMUNIKASI INDONESIA Tbk.

                  Head of Long Distance Division
                  Graha Citra Caraka, Lantai M
                  Jalan Gatot Subroto Kav 52
                  Jakarta - 12710, Indonesia

                  Phone No. : (021) 5221400
                  Fax No.   : (021) 5274300

                  CC : Director of Network Business

         b.       CONTRACTOR

                  Project Manager for RING JASUKA BACKBONE.
                  (Contractor Representative)

                  Siemens Business Park Jl.MT Haryono
                  Kav.58-60 Jakarta 12780 - Indonesia

                  Phone  No.         : (021) 27509 372
                  Fax No.            : (021) 79178 989

50.2     A notice shall be effective when delivered and signed acknowledge
         receipt or on the notice's effective date, whichever is later.

                                   ARTICLE 51
                             CONTRACTOR'S PERSONNEL

51.1     Employees of CONTRACTOR for the execution of the Works under this
         Contract shall, at all times, be identified and recognized as the
         employees of CONTRACTOR under his administrative control, and shall at
         no time be identified as employees of TELKOM.

51.2     CONTRACTOR shall obtain and furnish necessary security clearance,
         personnel passports, visas and other documents for personnel performing
         services under this

                                                                              61
<PAGE>

         Contract.

51.3     At all times covered by this Contract, CONTRACTOR shall exercise
         complete control over his employees.

51.4     CONTRACTOR and his employees shall conform to all applicable local
         laws, regulations and ordinances, and shall promptly correct any
         violations brought to his attention.

51.5     CONTRACTOR shall be responsible for the professional and technical
         competence of his employees and try his best to select and employ only
         those persons who in his judgment will be reliable and competent and
         who will comply with local laws and customs and conform to a high
         standard of moral and ethical conducts.

51.6     CONTRACTOR shall agree upon written request from TELKOM's Project
         Manager after discussion with CONTRACTOR, to terminate the employment
         of any of his employees performing the work under this Contract, if
         TELKOM's Project Manager considers that such termination is necessary
         to protect the interest of TELKOM and/or the Government of Indonesia.

51.7     CONTRACTOR shall bear all expenses necessary for such termination of
         employment and shall provide personal for replacement, at his own
         expense.

51.8     CONTRACTOR shall utilize as many local personnel as possible, and
         CONTRACTOR's expatriate personnel shall be limited only to engineers,
         specialized technicians and administrative personnel who are not
         available in Indonesia.

                                   ARTICLE 52
                             USE OF LOCAL PERSONNEL

The CONTRACTOR is encouraged, to the extent practicable and reasonable, to
employ staff and labor with the required qualifications and experience from
sources within Indonesia.

                                   ARTICLE 53
                               SOFTWARE LICENSE

53.1     Subject to the terms and conditions in this Contract, CONTRACTOR grants
         to

                                                                              62
<PAGE>

         TELKOM the non-exclusive, non-transferable and non-sublicensable
         license to use the software solely on the Goods and at the Sites except
         as otherwise expressly agreed in writing between the Parties and to use
         the software documentation for such aforementioned purpose.

53.2     TELKOM shall be entitled to produce back-up copy of each item of the
         software, respectively, whereby the use of such back-up copy shall be
         limited to replace the original software, if the original software is
         inoperable. TELKOM shall keep records about the storage of such back-up
         copies and present such records to CONTRACTOR upon request.

53.3     TELKOM acknowledges and agrees that the software and the software
         documentation contain proprietary and confidential information and
         trade secrets of CONTRACTOR and its third party licensors, and agrees
         to keep and treat such software and software documentation
         confidential.

53.4     TELKOM shall a) not reproduce, copy, or modify the software in whole or
         in part except as authorized by CONTRACTOR in writing or as provided in
         this Section; and b) not attempt to decompile, reverse engineer,
         disassemble, reverse translate, or in any other manner decode the
         software except as specifically authorized by compulsory law.

                                   ARTICLE 54
                                 MISCELLANEOUS

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

54.2     Contactor shall make by its own costs 25 (twenty five) copies of this
         Contact to be delivered to TELKOM for the control of implementation of
         the Contract and other related activities.

54.3     In the event any of the articles of this Contract is unenforceable,
         then such

                                                                              63
<PAGE>

         article shall be deleted and shall be deemed to be of no force or
         effect. The Parties shall, to the extent possible, negotiate in good
         faith to agree upon an enforceable provision having a materially
         similar effect, and this Contract shall be amended accordingly.

54.4     In the implementation of this Contract the Parties shall consider
         business ethics as a public ethics to success and result of Project
         quality.

                                   ARTICLE 55
                        EFFECTIVE DATE OF CONTRACT (EDC)

This Contract shall be effective on the date, month and year first above
written.

IN WITNESS WHEREOF, this Contract is made in three rangkap 3 (tiga) asli dan
dilangsungkan di Jakarta oleh (3) original and executed in Jakarta by duly
wakil-wakil para Pihak, bermaterai cukup, masing-masing representatives of the
Parties hereto in view of mengikat dan mempunyai kekuatan hukum yang sama.
prevailing laws, bearing sufficient stamp duties, each of which shall be binding
and having the same legal power.

                                  Signed by :
                                  -----------
                                  Ditandatangani oleh :

                                 For and on behalf of :
                                 ----------------------
                                  Untuk dan atas nama :

 PT TELEKOMUNIKASI INDONESIA, TBK                       CONTRACTOR
                                                     NEC CORPORATION
                                                    (CONSORTIUM LEADER)

            K R I S T I O N O                          AKIHITO OHTAKE
            -----------------                          --------------
           PRESIDENT DIRECTOR                       SENIOR VICE PRESIDENT

                                                    PT.SIEMENS INDONESIA
                                                     (CONSORTIUM MEMBER)

                                                      MARKUS STROHMEIER
                                                  HEAD OF COM FIXED NETWORK

                                                        HERBERT FETTIG
                                                  GENERAL MANAGER OF FINANCE
                                                 AND BUSINESS ADMINISTRATION

                                                                              64

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]