<DOCUMENT>
<TYPE>EX-4.16
<SEQUENCE>16
<FILENAME>u92256exv4w16.txt
<DESCRIPTION>EX-4.16 SERVICE LEVEL AGREEMENT, DATED DEC.23,2002
<TEXT>
<PAGE>

                                                                    Exhibit 4.16

                         PERUSAHAAN PERSEROAN (PERSERO)
                        PT TELEKOMUNIKASI INDONESIA TBK.

                                      AND

                            ERICSSON CDMA CONSORTIUM
                        ERICSSON WIRELESS COMMUNICATION
                             PT ERICSSON INDONESIA
                             PT INFRACELL NUSATAMA

                            SERVICE LEVEL AGREEMENT
<PAGE>

                             SERVICE LEVEL AGREEMENT

THIS SERVICE LEVEL AGREEMENT is made the 23rd day of December 2002.

BETWEEN:

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

and

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

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

WHEREAS

A.       TELKOM and PARTNER have entered into a Master Partnership Procurement
         Agreement dated [date] for the procurement of core network assets
         contemplated in the T-21 Program and for implementing the T-21 Program
         (the "Master Partnership Procurement Agreement").

B.       TELKOM has requested PARTNER to render operating and maintenance
         support services, and PARTNER has agreed to provide these services in
         accordance with this Service Level Agreement.

C.       Accordingly, pursuant to the Master Partnership Procurement Agreement,
         the Parties agreed to enter into this Service Level Agreement to
         support the maintenance of the Network for at least three (3) years
         from the Commencement Date.

CHAPTER 1 - GENERAL TERMS AND CONDITIONS

1.       DEFINITIONS

1.1      All terms and definitions used in the Master Partnership Procurement
         Agreement (including the technical terms defined in Appendix 23 -
         (Technical Terms) of the Master Partnership

                                       1
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         Procurement Agreement) shall have the same meaning in this Service
         Level Agreement unless otherwise stated.

1.2      In addition, where the context permits, the following expressions shall
         have the following meanings:

         (a)      "CALL BACK TIME"           means the time taken by TSC2
                                             personnel to call back TELKOM after
                                             the trouble ticket has "been
                                             created.

         (b)      "COMMENCEMENT DATE"        [check] means the first day after
                                             the Commissioning of the
                                             Deliverables in the second Purchase
                                             Order which will be issued under
                                             the Master Partnership Procurement
                                             Agreement, or earlier as requested
                                             by TELKOM.

         (c)      "FAULT MANAGEMENT"         means all TELKOM service requests
                                             or Customer Service Requests (CSR).

         (d)      "HELP DESK"                means the help-desk support service
                                             to be provided by PARTNER as set
                                             out in Article 10.1.

         (e)      "KPI"                      means the terms and conditions as
                                             well as service levels to be met
                                             in providing the Services as set
                                             out in Articles 9 to 13 as well as
                                             the Appendices referred to in these
                                             Articles.

         (f)      "PERMANENT FIX"            means a complete solution restoring
                                             entire functionality as provided in
                                             Appendix B.

         (g)      "SUB-SYSTEM"               means a BSC, BTS, transmission
                                             equipment, BSS's NEM (these
                                             mentioned equipment are grouped as
                                             BSS), PDSN, AAA, HA, DNS, Firewall,
                                             WAP Gateway, WAP Server, PDN's NEM
                                             (these mentioned equipment are
                                             grouped as PDN) and other similar
                                             or related equipment, including all
                                             associated software and components
                                             that acquired from PARTNER.

         (h)      "SYSTEM"                   means two or more Sub-system
                                             forming a network that is ready for
                                             commercial service.

         (o)      "SERVICES"                 means the services for the Network
                                             to be provided by PARTNER to TELKOM
                                             as set out in Articles 9 to 14
                                             starting from the Commencement
                                             Date.

         (j)      "TEMPORARY FIX"            means a temporary work around
                                             solution as provided in Appendix B.

         (k)      "TROUBLE TICKET"           means the ticket issued by
                                             PARTNER'S support desk identifying
                                             the problem alerted.

         (l)      "TSC1"                     means TELKOM's support personnel
                                             dealing with operation and
                                             maintenance activities located at
                                             each Location.

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<PAGE>

         (m)      "TSC2"                     means PARTNER'S support desk
                                             located in Jakarta and/or PARTNER's
                                             specialized technical support staff
                                             and designers who have the
                                             capability of evaluating complex
                                             network problems.

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

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

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

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

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

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

1.8      References. References to Articles and Appendices are references to the
         Articles of, and the Appendices to this Service Level Agreement.
         References to any laws or regulations shall be construed as references
         to those laws or regulations as from time to time amended or reenacted.

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

1.10     General and Specific Provisions. In the event of ambiguity over the
         application of any provision of the Service Level Agreement, this
         Service Level Agreement shall be interpreted to favor the specific
         meaning and/or application over the general meaning and/or application.

2.       FORCE MAJEURE

2.1      Neither Party shall be liable for delays in delivery or performance, or
         for failure to manufacturer, deliver or perform when caused by any of
         the following which are beyond the reasonable control of the delayed
         Party, including but not limited to as acts of God, acts of the public
         enemies, acts of civil or military authority, acts of war, acts of
         terrorism, riots, strikes, lockouts, other labor disturbances,
         hurricanes, earthquakes, fires, floods or other natural disasters,
         epidemics and embargoes or a change to any government of Indonesia law,
         regulation, decree or government department policy having the force of
         law which has a material adverse impact on the ability of a Party to
         perform this Agreement.

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2.2      Any occurrence belonging to Force Majeure category shall be notified
         immediately to the other party not later than fourteen (14) days after
         such occurrence.

2.3      In the event that due to Force Majeure the implementation of this
         Service Level Agreement or relevant agreement, acceptance test,
         integration, other system tests or other matters provided herein are
         suspended, the implementation period shall be extended by the numbers
         of days equal to the duration of suspended implementation.

2.4      Neither party shall be liable for any losses suffered by the other
         party arising as a result of Force Majeure.

3.       ASSIGNMENT AND SUBCONTRACTING

3.1      PARTNER shall not, without the prior written consent of TELKOM (such
         consent not to be unreasonably withheld or delayed), assign this
         Service Level Agreement, or assign or encumber any of the moneys due or
         becoming due under it.

3.2      TELKOM reserves the right to assign this Service Level Agreement, with
         prior written consent of PARTNER, such approval not to be unreasonably
         withheld or delayed, to any of TELKOM's subsidiaries or related
         companies.

3.3      A schedule of each proposed sub-contractor and the part of the Services
         proposed to be performed by such sub-contractor is attached in Appendix
         1. In case of any plan to change and/or to add a sub-contractor,
         PARTNER shall notify TELKOM in writing immediately before the proposed
         sub-contractor is appointed TELKOM shall advise within ten (10)
         Business Days if it has substantive objections to the appointment of
         any of such proposed sub-contractors and/or the work they were intended
         to do, and PARTNER shall take such objections into account so as to
         meet with TELKOM's approval

3.4      The use of sub-contractors shall in no way relieve PARTNER from its
         responsibility to deliver the Services to TELKOM (in particular to
         ensure that any Services comply with all requirements of this Service
         Level Agreement) or to perform necessary tasks such as project
         management related to this responsibility in accordance with this
         Service Level Agreement.

3.5      PARTNER shall ensure that the addition or removal of any
         sub-contractors shall not impact the agreed Contract Price or
         implementation plan and/or the service levels in this Service Level
         Agreement.

4.       GOVERNING LAW AND LANGUAGE

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

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

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

5.       SETTLEMENT OF DISPUTES

5.1      If any disputes arising between TELKOM and PARTNER in connection with
         or arising out of

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

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

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

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

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

         (ii)     each of (A) the Party initiating the arbitration and (B) the
                  respondent Party or Parties to the Dispute shall nominate one
                  (1) arbitrator within thirty (30) days of the written notice
                  of the Dispute described above. The relevant Parties shall
                  within (30) days of the appointment of the two (2) arbitrators
                  seek to appoint a third arbitrator. If any relevant Party does
                  not nominate an arbitrator or if the relevant Parties cannot
                  agree on the choice of the third arbitrator, in each case
                  within the relevant period, then each unappointed arbitrator
                  shall be selected by the Chairman of the SIAC (provided that
                  the requirements in Section 5.4(ii) are satisfied).

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

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

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

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

5.9      No Party or person involved in any way in the creation, coordination or
         operation of the arbitration of any Dispute may disclose the existence,
         content or results of fee Dispute or any arbitration conducted under
         this Agreement in relation to that Dispute, in each case subject to
         those disclosures permitted by Article 5.

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5.10     This Agreement and the rights and obligations of the Parties shall
         remain in full force and effect pending the award in such arbitration
         proceeding, which award, if appropriate shall determine whether and
         when only termination shall become effective. The provisions contained
         in this Article 5 shall survive the termination and/or expiration of
         this Agreement.

6.       NOTICES AND AUTHORIZED REPRESENTATIVES

6.1      All notifications required or permitted under this Service Level
         Agreement shall be sufficiently given if made in writing and delivered
         personally by hand or by courier or sent by prepaid registered post or
         by facsimile to the addresses of the Parties set out below or as such
         address as from tune to time notified in writing:

         For TELKOM:
         Perusahaan Peseroan (Persero) PT Telekomunikasi Indonesia Tbk.
         JI. Japati No. l,Bandung 40133
         Attention : President Director
         Fax       : (022)440-313

         For PARTNER:
         PT Ericsson Indonesia
         Wisma Pondok Indah, 10th Floor
         JI. Sultan Iskandar Muda V TA
         Jakarta 12310, Indonesia
         Attention : President Director
         Fax       : (021)750-1482

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

6.2      PARTNER shall appoint a point of contact or designated representative
         authorized to act on behalf of PARTNER, and whose instructions and
         requests shall be binding for PARTNER as to all matters pertaining to
         the Services brought to his attention by TELKOM. TELKOM shall appoint a
         point of contact or designated representative authorized to act on
         behalf of TELKOM as to all matters pertaining to the Services.

         The initial point of contacts are listed below:

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

         TELKOM Point of Contact:
         Head of Fixed Wireless Division (as Project Manager)

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         JI. Kebun Sirih, Kav. 12
         Jakarta, Indonesia

         Tel    : (021) 385-7777
         Fax    : (021)
         E-mail : alex_js@telkom.co.id
         Mobile : (0811) 965-500

7.       TERMINATION

7.1      This Service Level Agreement shall come into effect on the Commencement
         Date and shall continue to in force for an initial period of three
         years, subject to the right reserved by TELKOM to review and seek to
         amend the period of this Service Level Agreement on an annual basis.
         Pursuant to this right, TELKOM shall convey its proposed amendments to
         PARTNER at least three months prior to the expiration of next
         anniversary of the Commencement Date (but no more than six months
         before the next anniversary). PARTNER shall consider the proposed
         revisions or amendments and decide whether it will accept them. If
         PARTNER cannot agree to the proposed revisions or amendments after
         negotiation in good faith to reach agreement at the latest one month
         before the next anniversary of the Commencement Date, this Service
         Level Agreement may be terminated at the anniversary of the
         Commencement Date.

7.2      TELKOM shall be entitled to terminate all or part of this Service Level
         Agreement upon any of the following events:

         (a)      termination of the MPPA for whatever reason;

         (b)      PARTNER declares or clearly states that the Services, or any
                  substantial part thereof, will not or cannot be completed;

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

         (d)      PARTNER violates any law relating to the prevention of
                  corruption or bribery in PARTNER's home country or any
                  jurisdiction in which PARTNER is carrying out any of the
                  works.

7.3      PARTNER shall not be entitled to terminate or abandon this Service
         Level Agreement, except in the event that:

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

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         (b)      TELKOM fails to pay any amounts due, or becomes unable to pay
                  for amounts to become due, for a period of more than six (6)
                  months and during discussions between the Parties during such
                  period the Parties cannot agree on a satisfactory mechanism
                  for payment and/or security for payments owed, including
                  establishment of an escrow account or the provision of a bank
                  guarantee by TELKOM acceptable to PARTNER;

         (c)      an event of Force Majeure continues for a period in excess 6
                  months; or

         (d)      pursuant to Article 5; and

         (e)      termination of the MPPA.

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

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

7.6      In the event of termination, the Parties agree to waive the provisions
         of Article 1266 of the Indonesian Civil Code to the effect necessary to
         effect termination of this Service Level Agreement in accordance with
         Article 7 without the need for a court decision.

8.       GENERAL PROVISIONS

8.1      Severance. If any provision of this Service Level Agreement or part
         thereof is rendered void, illegal or unenforceable by any legislation
         to which it is subject, it shall be rendered void, illegal or
         unenforceable only to that extent and it shall in no way affect or
         prejudice the enforceability of the remainder of such provision or the
         other provisions of this Service Level Agreement. The invalidity,
         illegality or unenforceability of any provision in this Service Level
         Agreement under the laws of any one jurisdiction shall not in itself
         affect the validity, legality and enforceability of such provision
         under the laws of any other jurisdiction.

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

8.3      Release and Indulgence. No failure on the part of either Party to
         exercise and no delay on the part of either Party in exercising any
         right hereunder will operate as a release or waiver thereof, nor will
         any single or partial exercise of any right under this Service Level
         Agreement preclude any other or further exercise of it. The rights and
         remedies provided in this Service Level Agreement are cumulative and
         not exclusive of any right or remedy provided by law.

8.4      Entire Agreement. This Service Level Agreement embodies all the terms
         and conditions agreed upon between the Parties as to the subject matter
         of this Service Level Agreement, and supersedes all prior
         representations, arrangements, understandings and agreements between
         the Parties whether written or oral (including without limitation, the
         RfP and such agreed amendments thereto).

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

8.6      No Partnership. Notwithstanding the reference to the terms "partner"
         and/or "partnership" in this Service Level Agreement, the relationship
         between the Parties shall not constitute a legal partnership. Neither
         Party has the power or the right to bind, commit or pledge the credit
         of the other Party.

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

CHAPTER 2 - THE SERVICES

9.       GENERAL PRINCIPLES

9.1      PARTNER agrees that the Services to be provided to TELKOM will be
         provided with all-due care in a timely and professional manner by
         properly skilled personnel employed by a world class leading technology
         supplier with specialized telecommunications expertise, knowledge or
         infrastructure and who have the necessary technical expertise,
         financial resources and strategic business interest to provide the
         Services to TELKOM.

9.2      PARTNER acknowledges that a key mutual objective of the Parties is to
         support the development of the Indonesian telecommunications industry
         and economy by maximizing the amount of equipment, materials, manpower
         and services procured locally within Indonesia. In addition, PARTNER
         acknowledges that in order to provide the Services in a timely fashion,
         there must be sufficient qualified personnel located at key locations
         within Indonesia to respond quickly. Accordingly, at all times after
         the Commencement Date, PARTNER shall ensure that sufficient personnel
         of suitable qualifications are available to provide the Services.
         TELKOM and PARTNER should mutually agree the availability of PARTNER's
         personnel within Indonesia based at Locations.

9.3      The scope and responsibilities of TELKOM's operations and maintenance
         services are as detailed in Appendix L.

9.4      Without prejudice to Article 9.2, PARTNER shall provide TELKOM with an
         initial organization chart and a qualified Service Delivery Manager
         (SDM) with his/her qualifications. All personnel trained by PARTNER
         will be suitable assigned and PARTNER shall ensure the Deliverables
         meet with the KPIs under this Agreement. All replacements must be
         qualified and appropriate for the provision of the Services.

9.5      The Services as described in Article 9.1 comprise of five main types:

         (a)      Fault Management including the Help Desk Support Service,
                  Fault Management Service and Emergency Support Service;

         (b)      On-Line Information/Reporting including the On-line
                  Information Service and General Reporting Service;

         (c)      Hardware Change Management including the Hardware Change
                  Management Service, Hardware Maintenance Service, Spare Parts
                  Repair and Replacement Service;

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<PAGE>

         (d)      Software Update including the Software Update Service and
                  Software Upgrade Support Service; and

         (e)      Operations and Maintenance Assistance including Operations and
                  Maintenance Assistance Service and Knowledge Transfer Service.

9.6      The Services to be provided by PARTNER shall apply to all Deliverables
         and shall cover all faults or defects to the Deliverables regardless of
         how caused or by whom, in accordance with the terms of this Agreement.

10.      FAULT MANAGEMENT

10.1     The Help-Desk Support Service

         (a)      PARTNER shall operate the Help-Desk in accordance with this
                  Agreement. Contact details of the Help-Desk are set out in
                  Appendix A. The Help-Desk may be accessed by telephone, email
                  or fax.

         (b)      The Help-Desk will be located in Jakarta. The Help-Desk will
                  be operational between 8:00 am and 5:00 pm Mondays to Fridays
                  (Indonesia - Jakarta local time) and Emergency Support Service
                  will be operational and manned 24 hours a day, 365/366 days a
                  year.

         (c)      PARTNER shall ensure that each time a call is made or an email
                  or fax is sent to the Help-Desk, the call, email or fax will
                  be attended to by a human operator within 3 minutes of its
                  receipt by the Help-Desk. During this 3 minutes waiting
                  period, any outages known to PARTNER should also be conveyed
                  to TELKOM where necessary.

         (d)      Within 10 minutes of receiving the call, the email or fax, the
                  Help-Desk will issue a Trouble Ticket and assign the problem
                  to a specific TSC-2 technician to be attended to. The Help
                  Desk will inform TELKOM of the name and contact information of
                  the TSC-2 assigned to the trouble ticket.

         (e)      All emergency problems will be dealt with under the Emergency
                  Support Service described below.

         (f)      Each Trouble Ticket issued will be classified as either:

                  (i) "Critical";

                  (ii) "Major"; or

                  (iii) "Minor".

         (g)      The definitions of "Critical", "Major" and "Minor" are set
                  out- in Appendix B. Whether a fault is considered "Critical",
                  "Major" or "Minor" will be determined by TELKOM initially but
                  may be adjusted (to be more or less critical) after
                  consultation with PARTNER.

         (h)      Once the problem has been resolved to the satisfaction of
                  TELKOM, the PARTNER Help Desk will close the corresponding
                  Trouble Ticket.

         (i)      PARTNER agrees to record all Help-Desk calls and to document
                  all relevant actions undertaken by it as a result of the call,
                  [in such formats as may be reasonably required by TELKOM,
                  which include without limitation separate reports covering
                  help desk activity and fault status].

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10.2     The Fault Management Service

         (a)      PARTNER shall provide a fault-management service to TELKOM to
                  correct and rectify faults with the System and/or Sub-system
                  in a timely manner (the "Fault Management Service").

         (b)      A "fault" under this Article shall include all defects,
                  interruptions or disturbances to the System and/or Sub-system
                  and the failure of the System and/or Sub-system to meet the
                  Technical Specifications.

         (c)      Each time a fault is reported by TELKOM to PARTNER under this
                  service, PARTNER will ensure that it:

                  (i)      responds to TELKOM within the prescribed Callback
                           Time;

                  (ii)     provides to TELKOM a Temporary Fix to the fault
                           within a prescribed timeframe; and

                  (iii)    provides to TELKOM a Permanent Fix to the fault
                           within a prescribed timeframe.

                  The prescribed timeframes for fault resolution under this
                  service is detailed in the Fault Resolution Schedule set out
                  in Appendix B based on the how critical the fault is. In all
                  cases, the required fault location, information gathering, and
                  fault resolution will be the responsibility of and will be
                  performed by PARTNER with the reasonable cooperation of
                  TELKOM's staff.

         (d)      Whether a fault is considered "Critical", "Major" or
                  "Minor" will be determined by TELKOM initially but may be
                  adjusted (to be more or less critical) after consultation with
                  PARTNER.

         (e)      PARTNER shall hold meetings with TELKOM at least once a week
                  to discuss the faults encountered at the Main Help Desk and at
                  each DIVRE level and their resolution and shall suggest
                  whether any actions should be carried out to prevent similar
                  faults from arising in the future.

10.3     The Emergency Support Service

         (a)      The Help-Desk will provide the Emergency Support Service.

         (b)      The Emergency Support Service shall be available on-line, by
                  fax and by phone 24 hours a day, 7 days a week, 365/366 days a
                  year (as applicable).

         (c)      PARTNER's technical support personnel (TSC2) shall be required
                  to call TELKOM's representative (TSC1) back within 15 minutes
                  of receiving TELKOM's call, email or fax at the Help Desk for
                  an emergency problem. All emergency problems will be recorded
                  as 'Critical Faults' by the Help Desk.

         (d)      PARTNER's technical support personnel should reach the site of
                  the problem within the stated transportation time in Appendix
                  C from receiving TELKOM's call, email or fax at the Help Desk
                  relating to an emergency problem.

         (e)      PARTNER will provide a Temporary Fix within ninety (90)
                  minutes after arriving at the site of the problem.

         (f)      PARTNER will provide a Permanent Fix within 24 hours of
                  receiving the call, e-mail or fax.

                                       11
<PAGE>

10.4     For revenue impacting breakdowns caused by System non-performance,
         PARTNER will pay compensation to TELKOM, based on the mechanism
         described in Appendix C.

11.      ON-LINE INFORMATION/REPORTING

11.1     The On-Line Information Service

         (a)      PARTNER shall set up and maintain a secure extranet
                  information service facility to enable on-line access by
                  authorised TELKOM personnel only (the "On line Information
                  Service") which will make available the following types of
                  information:

                  (i)      Periodic Technical Information

                  (ii)     Operations and Maintenance Procedures

                  (iii)    Fault Handling Procedures

                  (iv)     Product Documentation

                  (v)      Trouble Ticket Resolution Database

                  (vi)     Generic Failure Reports

                  (vii)    Global Training Service Offering and course catalog

                  as well as the other categories of information as set out in
                  Appendix D. The information provided will be updated according
                  to the frequency set out in Appendix D.

11.2     The General Reporting Service

         PARTNER shall provide the following types of reports to TELKOM during
         the period of this Agreement on the frequency set out in Appendix D:

                  (i)      Help Desk Activity Report

                  (ii)     Fault Status Report

                  (iii)    Operation and Maintenance Assistance Report

                  (iv)     Hardware Swap (Replacement) Status Report

                  (v)      Report for each Emergency Call with updated status

                  (vi)     Software Updates Report

                  (vii)    Quarterly Repair Status Report.

12.      HARDWARE CHANGE MANAGEMENT

12.1     The Hardware Change Management Service

         (a)      PARTNER will maintain an inventory list of spare parts and
                  periodically update it in accordance with Appendix D to ensure
                  the delivery of spare parts within agreed lead-times. Any
                  spares delivered to TELKOM shall be recorded in the Hardware
                  Report and PARTNER shall forward all Hardware Reports to
                  TELKOM. The Hardware Report will describe the changes only
                  based on TELKOM requests to provide the spare parts needed for
                  a period of time.

         (b)      In the event that PARTNER wishes to introduce a new or updated
                  hardware component as a replacement of an older component,
                  PARTNER shall first demonstrate to TELKOM the proper working
                  of the replacement hardware at TELKOM's test bed.

12.2     The Spare Parts Repair and Replacement Service

         (a)      PARTNER shall be responsible for supplying spare part
                  replacement and repair services for the Network based on the
                  timeframes set out in Appendix E. All spare

                                       12
<PAGE>

                  parts supplied shall be in good working order and be ready
                  for service on delivery.

         (b)      PARTNER shall provide, if requested by TELKOM, information
                  concerning the spare parts database and PARTNER shall deliver
                  the spare parts within agreed lead-times.

         (c)      PARTNER shall make available critical and non-critical spare
                  parts 24 hours a day, 7 days a week, 365/366 (as relevant)
                  days a year and PARTNER shall supply them on request by TELKOM
                  within 3 hours of receiving the request. PARTNER shall supply
                  non-critical spare parts by noon on the next Business Day from
                  the time the request is received by PARTNER. If necessary,
                  PARTNER shall deliver the non-critical spare parts on the
                  same day to TELKOM.

         (d)      Without prejudice to PARTNER's obligation to provide spare
                  parts under this Service Level Agreement, PARTNER shall ensure
                  that TELKOM shall be able to purchase spare parts at the same
                  unit prices set out in the relevant Purchase Order(s), from
                  time to time as required, for a period of at least 5 years
                  after the expiration of this Service Level Agreement.

         (e)      PARTNER shall also provide TELKOM on a yearly basis (prior to
                  each JPS) with a detailed list of all spare parts, their level
                  of criticality to the Network, the length of time required to
                  procure such spare parts, the likelihood of failure of the
                  component, equipment, software or parts thereof that such
                  spare parts may replace.

         (f)      PARTNER shall provide TELKOM with quarterly reports no later
                  than March 31, June 30, September 30 and December 31 each year
                  on its delivery performance for spare parts and on spare parts
                  usage.

12.3     The Hardware Maintenance Service

         (a)      PARTNER will provide replacement units or parts for the
                  hardware of the System to maintain the operation of the
                  equipment to meet the required operation and maintenance
                  parameters.

         (b)      PARTNER shall supply the replacement units or parts to TELKOM
                  with a delivery note mentioning the unit type, the reference
                  to the notified type of the faulty replacement units or parts,
                  the serial number(s) of the delivered replacement units or
                  parts, the total number of pieces to be delivered and the
                  TELKOM failure report number. This information shall also be
                  added to the Hardware Report.

         (c)      To implement required hardware changes in the Network, PARTNER
                  will assist TELKOM on a case-by-case basis.

13.      SOFTWARE UPDATE

13.1     The Software Update Service

         (a)      PARTNER shall be responsible for the proper functioning of all
                  software provided by PARTNER to TELKOM in connection with any
                  Deliverables.

         (b)      PARTNER shall provide software services under this Agreement
                  that shall consist of software software updates (including bug
                  fixes and patches and software maintenance services) required
                  to optimize System performance. Additional PARTNER shall be
                  required to achieve interoperability with the NSS of Samsung
                  Electronics Co. Ltd. At no extra cost to TELKOM, while with
                  respect to achieving interoperability with other

                                       13
<PAGE>

                  external systems PARTNER's obligations shall be subject to
                  agreement on the terms and conditions, including payment of
                  costs, for the services provided.

                           (i)      Software updates. PARTNER shall implement
                           all software release updates, bug fixes and patches
                           released by PARTNER, PARTNER shall:

                           -        Work with TELKOM to determine the reasons
                                    for software bugs that may cause distortion
                                    in Network performance;

                           -        Prepare release notes stating the reasons
                                    for each bug fix or patch for TELKOM's
                                    approval;

                           -        Implement the bug fixes or patches on
                                    TELKOM's network;

                           -        Present an implementation report to TELKOM
                                    after each software release update, bug fix
                                    and patch; and

                           -        Track all bug fixes or patches by using a
                                    structured software change management
                                    process.

                  (ii)     External interoperability. Subject to agreement with
                           TELKOM on terms and conditions, including payment,
                           PARTNER shall provide assistance for connecting
                           PARTNER provided equipment with other existing or
                           future systems in the Network. In this connection,
                           PARTNER shall:

                           -        Work with TELKOM and the vendor of any
                                    external systems to determine the software
                                    customization required to achieve
                                    interoperability;

                           -        Prepare release notes stating the reasons
                                    for each software customization for TELKOM's
                                    approval;

                           -        Prepare and customize the software upon
                                    receipt of TELKOM's approval;

                           -        Install the customized software on the
                                    Network;

                           -        Provide TELKOM with an implementation report
                                    after each installation; and

                           -        Perform software version maintenance.

         (c)      All software updates shall be completely tested by PARTNER
                  prior to installation. Any update shall take place during late
                  night hours (2:00 to 4:00 am), if possible.

         (d)      PARTNER shall ensure that any interruption to the Network is
                  minimised and in any event for no longer than 15 minutes
                  unless agreed by the Parties during any software update or
                  maintenance.

         (e)      PARTNER shall ensure that the previous software version can be
                  reinstalled without any interruption to the Network in the
                  event that the new software updates do not load properly or
                  perform satisfactorily. In the event that the update or
                  maintenance appears unlikely to be completed before 4:00 am,
                  PARTNER shall re-install the previous software version and
                  re-attempt the update or maintenance the following day.

         (f)      Any interruption to the Network beyond the period agreed in
                  Article 13(d) (including without limitation any service
                  interruption or system downtime) caused by a software update
                  that results in a revenue loss for TELKOM shall be treated as
                  a Critical fault and compensation shall be payable by PARTNER
                  to TELKOM in accordance with Appendix C.

                                       14
<PAGE>

13.2     The Software Upgrade Support Service

         (a)      PARTNER will provide software upgrades when deemed necessary
                  by TELKOM to meet its internal and external business
                  requirements in relation to operation and maintenance of the
                  Network.

         (b)      TELKOM may require the upgrade for reasons including (but not
                  limited to):

                  (i)      addition of new features

                  (ii)     support of new call processing functionality

                  (iii)    support of new standards

                  (iv)     hardware upgrade (requiring accompanying software
                           upgrade).

         (c)      For each of the software upgrades provided to TELKOM, PARTNER
                  shall ensure that the following requirements are fulfilled:

                  (i)      full backward compatibility

                           PARTNER shall ensure full backward compatibility with
                           existing hardware, software, interfaces, and related
                           matters, provided that PARTNER shall not be
                           responsible for compatibility with system changes
                           made solely by TELKOM.

                  (ii)     training

                           PARTNER shall provide training to qualified TELKOM
                           personnel regarding the changes made to the software.

                  (iii)    business case assistance

                           For every major software upgrade, PARTNER shall work
                           closely with TELKOM to prepare a business case
                           justifying the upgrade. The business case will
                           detail the cost implications and potential
                           benefits which TELKOM can expect to derive from the
                           upgrade.

         (d)      The cost of software upgrade services (such as developing a
                  business case for the upgrade and implementing the upgrades)
                  are included in the Services.

         (e)      In case PARTNER proposes to discontinue support of any
                  software version, PARTNER shall provide an upgrade to the
                  next version upgrade at least 3 months before the proposed
                  date of withdrawal of support. TELKOM may require PARTNER to
                  reinstall the previous version at any time before the proposed
                  date of withdrawal of support, and if so PARTNER shall
                  continue to provide support for the previous version.

         (f)      The provisions of Article 13.1 shall apply mutatis mutandis to
                  any software upgrade. In particular, PARTNER shall ensure that
                  the operation of the Network is not interrupted during any
                  software upgrade. Any interruption to the Network beyond the
                  period agreed in Article 13.1(d) (including without limitation
                  any service interruption or system downtime) caused by a
                  software upgrade that results in a revenue loss for TELKOM
                  shall be treated as a Critical fault and compensation shall be
                  payable by PARTNER to TELKOM in accordance with Appendix C.

13.3     Software Upgrade Fees

         (a)      PARTNER shall offer all new software upgrades to TELKOM once
                  they are developed and provide TELKOM with a quote for the fee
                  for the software only. TELKOM may at its sole discretion
                  decide to accept or decline each upgrade.

                                       15
<PAGE>

14.      OPERATION AND MAINTENANCE ASSISTANCE

14.1     The Operations and Maintenance Assistance Service

         (a)      PARTNER shall provide in writing to TELKOM a high-level
                  description of the tasks required to be performed to assist
                  TELKOM's staff to operate and maintain the System and/or
                  Sub-system at the relevant Location/Sites, including
                  information relating to maintenance supervision, maintenance
                  audits, system configuration management, database management,
                  and troubleshooting as set out in Appendix F, for TELKOM's
                  approval. The detailed plan for preventive maintenance
                  procedures and detailed timing and criteria for routine daily,
                  weekly, monthly and annual maintenance checks and preventive
                  replacement and repair of the Network or its constituent parts
                  shall be discussed at the initial JPS and will be agreed upon
                  by the Parties.

         (b)      PARTNER shall provide to TELKOM operation and maintenance
                  assistance services on Business Days during normal working
                  hours in Indonesia at the relevant Location/Site as mutually
                  agreed by the Parties. PARTNER will provide 2 (two) Operation
                  and Maintenance engineers for a 3-year period who will be
                  located at TELKOM sites. Additional personnel will be provided
                  to provide operation and maintenance services on a case by
                  case basis during the period of this Agreement.
                  Notwithstanding the above, PARTNER shall remain responsible
                  for meeting the KPIs and shall adjust the maintenance
                  assistance team if necessary to ensure that the KPIs will be
                  met.

         (c)      TELKOM may also require PARTNER's experts to work outside
                  normal working hours during weekends and public holidays, if
                  exceptional circumstance make this necessary. In any such
                  event, TELKOM shall endeavor to give at least one-week prior
                  notice to PARTNER of its request, and agree any terms and
                  conditions of such request with PARTNER.

         (d)      PARTNER shall provide monthly reports to TELKOM on the type
                  and amount of operation and maintenance services supplied to
                  TELKOM.

         (e)      PARTNER, shall make available the required skills and
                  competences to ensure the Deliverables are meet with the tasks
                  of description required and mutually agreed by TELKOM and
                  PARTNER.

         (f)      TELKOM will use it best efforts to ensure that its team of
                  trained engineers is retained on the Project during the period
                  of this Agreement to provide for consistency and continuity.

14.2     The Knowledge Transfer Service

         (a)      In addition to the classroom training to be provided pursuant
                  to Article 47 of the Master Procurement Partnership Agreement,
                  PARTNER shall use its best efforts to ensure that adequate
                  operations and maintenance knowledge is transferred through
                  on-the-job training ("OJT") to TELKOM personnel on a
                  Location/Site basis to provide them with the skills to
                  operate, maintain and manage the Network by the third
                  anniversary of the Commencement Date. For this purpose,
                  PARTNER shall ensure that its operation and maintenance staff
                  is available on-site at TELKOM's premises as much as possible
                  on a dedicated basis.

         (b)      The OJT training programme and schedule shall be prepared on
                  an annual basis by PARTNER and approved by TELKOM during the
                  JPS and will cover at least:

                                       16
<PAGE>

                  (i)      the contents of the OJT System Operating Manual and
                           the Education System Information;

                  (ii)     system troubleshooting for the Network;

                  (iii)    higher level skills including system parts, RF parts,
                           system debugging methods and emergency Temporary Fix
                           methods for the Network.

         (c)      The objective of PARTNER's training shall be that the TELKOM
                  support personnel (TSC1) will be able to solve a successively
                  higher proportion of faults by themselves. PARTNER shall
                  conduct 2-3 day workshops to progressively transfer knowledge
                  to TELKOM support personnel. The workshops will be conducted
                  at least once per quarter in each DIVRE.

         (d)      The Progress and success of PARTNER's training efforts will be
                  evaluated at each DRM.

15.      ESCALATION PROCEDURE FOR SERVICE LEVEL FAILURES

         15.1     PARTNER shall use its best endeavors to promptly rectify any
                  service level failures. If the failure has not been rectified
                  to TELKOM's satisfaction, the Parties shall escalate the
                  resolution of the problems as follows:

                  (a)      in the first instance by discussions between their
                           respective DIVRE managers;

                  (b)      secondly, by discussions between their respective
                           Project Managers;

                  (c)      thirdly, by discussions between their respective
                           Account/Business Managers;

                  (d)      finally, by discussions between the senior executives
                           of PARTNER in [country] and the senior executives of
                           TELKOM.

CHAPTER 3 - PAYMENT TERMS AND CONDITIONS

16.      PAYMENT AMOUNT

16.1     The Services provided by PARTNER shall be paid for by TELKOM as
         follows:

         The Services provided by PARTNER pursuant to this Agreement will be
         paid quarterly, based on calculations of a 60% Basic Fee and 40%
         Variable Fee (based on the average cumulative installed lines - SLA
         variable cost per line calculated based on the deployment plan in the
         RfP)

         (a)      Basic Fees payable in equal installments shall be calculated
                  in accordance with Appendix J, This amount shall be due upon
                  delivery to TELKOM of an invoice for each installment,
                  accompanied by the following documents, or such additional
                  documents as may reasonably be required by TELKOM:

                  (i)      Invoice covering letter;

                  (ii)     Tax invoice ("Faktur Pajak") and tax payment slip
                           (/SSP) ("Surat Setoran Pajak")

                  (iii)    Simple receipt ("Kuitansi")

         (b)      Variable Fees shall be calculated according to Appendix J.
                  This amount shall be due upon delivery to TELKOM of an invoice
                  for the agreed sum, accompanied by the

                                       17
<PAGE>

                  following documents, or such additional documents as may
                  reasonably be required by TELKOM:

                  (i)      Invoice covering letter;

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

                  (iii)    Simple receipt ("Kuitansi");

                  (iv)     KPI compliance certificate issued by TELKOM;

                  (v)      Calculation of Variable Fee, KPI reduction (if any)
                           and loss of revenue compensation (if any).

16.2     In the event that this Service Level Agreement is terminated by
         TELKOM, TELKOM will pay amounts then due on a pro rata basis.

16.3     The Services are provided on a fixed fee basis. The only additional
         costs which TELKOM shall be liable for will be the actual cost price of
         replacement spare parts where the part replaced is shown to be damaged
         due to the willful or intentional misconduct, of a TELKOM employee, or
         actions resulting in or causing a Critical fault solely caused by
         TELKOM personnel. For the avoidance of doubt, the cost of removing the
         damaged parts and installing the new parts are not costs reimbursable
         by TELKOM but are deemed to be covered under the Hardware Change
         Management Service and Spare Parts Repair and Replacement Service.

17.      EVALUATION OF KEY PERFORMANCE INDICATORS ("KPIS") COMPLIANCE

         (a)      TELKOM will evaluate PARTNER's compliance with the KPI
                  annually. TELKOM shall be entitled to reduce proportionately
                  the Annual Fees payable under this Service Level Agreement
                  based on failure to achieve the required KPI compliance levels
                  as shown in Appendix I.

         (b)      The mechanism to evaluate the performance of PARTNER as
                  measured by the KPI is set out in Appendix I.

IN WITNESS WHEREOF, the Parties have caused this Service Level Agreement to be
signed by their duly authorized representative on the day and year first above
written.

PERUSAHAAN PERSEROAN (PERSERO)         ERICSSON CDMA CONSORTIUM
PT TELEKOMUNIKASI INDONESIA TBK.       ERICSSON WIRELESS COMMUNICATION INC.

                                        [STAMPED]

By /s/ Kristiono                       By /s/ Mark Cratsenburg
  -------------------------------         -------------------------------
Name  : Kristiono                      Name  : Mark Cratsenburg
Title : President Director             Title : Attorney-in-Fact of
                                               Ericsson Wireless Communication
                                               Inc.

                                       18
<PAGE>

                                        PT ERICSSON INDONESIA

                                        By  /s/ Ulf Mansson
                                          --------------------------------
                                        Name  : UIf Mansson
                                        Title : President Director

                                        PT INFRACELL NUSATAMA

                                        By /s/ Djoko N. Labbaika
                                          --------------------------------
                                        Name  : Djoko N. Labbaika
                                        Title : President Director

                                       19

</TEXT>
</DOCUMENT>
